Tech and chip makers lose $1 trillion in massive AI sell-off - Mashable

In July 2026, global tech and chipmakers faced a massive sell-off, with total market value losses reaching $1 trillion. The downturn primarily affected AI-related stocks, especially leading chip compa... Read original →

The AI bubble burst, triggering a massive sell-off in chip stocks, signaling a reassessment of investment returns in the AI sector. Leading firms like NVIDIA suffered steep losses, impacting the entire semiconductor supply chain, especially RAM and SSD storage segments. Investors are increasingly wary of unprofitable AI infrastructure investments, prompting capital to shift toward more cash-flow-positive ventures. Geopolitical tensions, particularly between the US and China, are heightening compliance risks and supply chain vulnerabilities. Competitors may pivot toward more profitable niches or pursue M&A strategies to optimize resources. Over the next 12 to 24 months, the industry will enter a correction phase, with technological breakthroughs or policy shifts potentially driving a turnaround. However, near-term recovery hinges on tangible profitability improvements.