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AI Stock Correction Deepens as Tech Giants Face Valuation Pressure After Earnings Misses
AI-focused stocks slid after weaker earnings from Palantir and others reignited valuation concerns, prompting a sector-wide correction across tech and semiconductor markets worldwide.
Global markets saw steep pullbacks in major AI-linked equities as investor concerns about stretched valuations intensified. Shares of Palantir and other AI software firms dropped sharply following quarterly earnings that missed analyst expectations. The correction spread across semiconductor and cloud sectors, erasing part of this year’s gains from the AI-led rally. Analysts cited high valuations, slower enterprise spending, and tightening financial conditions as key triggers. Despite the selloff, institutional investors remain confident in long-term AI infrastructure growth and automation adoption.