Why Have U.S. Tech Stocks Suddenly Plunged? Is the AI Bubble Really About to Burst?

Recently, global tech stocks have undergone a notable correction, particularly companies linked to the AI industry chain. Investors are beginning to reassess the investment thesis behind AI, which has driven gains for the past few years. Volatility in the share prices of tech giants such as Nvidia, Microsoft, and Tesla has also raised an important question: Is the golden age of the AI industry over?

I think it is too early to conclude that the AI bubble has burst, but the market has indeed entered a phase of more rigorous valuation scrutiny.

First, valuation pressures are mounting. Over the past few years, the AI narrative has driven up the share prices of many tech companies, with some already pricing in growth expectations for the coming years. When doubts arise about their ability to generate profits, highly valued stocks can easily face a correction.

Second, the gap between capital expenditure and actual returns is drawing increasing attention. Companies such as Microsoft, Google, and Amazon continue to pour huge sums into data centers and AI infrastructure, but investors want to know whether these investments will ultimately translate into sustained revenue and profits.

Third, the high-interest-rate environment continues to weigh on growth stocks. Financing costs and the pressure of discounting future cash flows make highly valued tech companies more sensitive.

Fourth, investors are starting to favor companies with genuine competitive advantages and profitability, rather than simply chasing the AI narrative.

I believe the AI industry's long-term direction has not changed, but the investment thesis may shift: away from chasing technological concepts and toward focusing on commercial adoption, profitability, and cash flow.

The real opportunities may lie with companies that can turn AI technology into practical productivity gains.

Do you think the AI industry is undergoing a normal correction, or are there already early signs of a bubble bursting?