“The stratospheric rally has left tech stocks vulnerable to sharp reversals,” said Jack Pitcher in The Wall Street Journal. This week saw another, as investors worried about “higher interest rates, stretched valuations and the prospect that billions of dollars of AI spending will outstrip the expectation of blockbuster profits”.The declines dragged Wall Street’s tech-heavy Nasdaq down by nearly 4% over five days to Wednesday, with chip-makers the worst affected. Sandisk and Micron – key members of a small group of memory stocks that have made “parabolic gains” – were among the biggest US fallers, both down more than 13%. But investors can't really complain: even after these slides, their gains this year are 727% and 269%, respectively.
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