A sharp selloff in technology and AI stocks rippled across global markets on Tuesday, June 23, 2026, as investors questioned sky-high valuations and the enormous sums companies are pouring into artificial intelligence.
According to MSN, it was the second straight day of declines, with Wall Street shifting "from rewarding AI spending to demanding evidence that it will produce outsized returns." Nvidia and Alphabet were among the names falling. CNBC reported the semiconductor sector dropped almost 7% just a day after hitting all-time records.
The damage was global. The Hindu Business Line reported South Korea's Kospi plunged 10% on Tuesday, while CNBC-TV18 noted the technology sub-index of Europe's Stoxx 600 fell more than 3% and the Nasdaq dropped over 2%. The Guardian said losses spread "from Wall Street to Asia" as investors weighed AI infrastructure spending.
Individual stocks took heavy hits. Livemint reported Micron Technology shares plunged 13%, citing valuation worries and slowing AI memory-chip production by SK Hynix. Benzinga reported Palantir was down nearly 40% in 2026 and flirting with oversold territory, while Investor's Business Daily tied software-stock pressure to interest rates. Concerns about a hawkish Federal Reserve and rising rates compounded the AI worries, according to Yahoo Finance.
Not everyone is alarmed. Yahoo Finance reported that analyst Dan Ives downplayed the selloff and Morgan Stanley's Slimmon called the chip rout "healthy," while Wedbush, per MSN, sees the drop as a buying opportunity. Bank of America reiterated its buy rating on Micron, raising its target to $1,500 from $950.
Upcoming tests loom: per 富途牛牛, Micron's earnings and Nvidia's annual shareholder meeting on June 25 could determine whether the AI infrastructure boom is sustainable.
Why it matters: AI-linked megacaps now drive much of the market's value, so a crisis of confidence in AI spending can quickly hit ordinary investors' retirement and savings accounts.