AI stock slump raises the question if investors are just taking profits or getting very nervous

AI stock slump raises question if investors are taking profits or getting nervous

Alphabet, Amazon, Meta, Microsoft deployed $720B in AI capex, but sell-offs this week (Nvidia -5%, chips -5-12%) expose investor doubts on ROI. Valuations at extremes (Sandisk P/E 68 vs S&P 25) signal oversupply risk—infrastructure budgets will contract if capex fails to justify returns.