Global AI , data centre stocks lose over $550 bn in market value amid tech sell-off

A sharp global technology sell-off wiped out more than $550 billion in market value on Monday, hitting AI companies, data center stocks, semiconductor manufacturers and leading Indian IT firms.

The correction triggered losses across major global markets, with investors pulling money out of high-growth technology stocks amid concerns over valuations, funding requirements and the pace of commercial returns from artificial intelligence investments.

Why global AI and tech stocks are falling

Market analysts said the latest sell-off differs from recent market declines driven by macroeconomic concerns such as interest rates and inflation.

According to market observers, the correction was fuelled by growing investor concerns over rising capital expenditure in the AI sector, increasing corporate debt levels and uncertainty over the timeline for generating significant revenues from artificial intelligence investments.

At the same time, easing geopolitical tensions and falling crude oil prices encouraged institutional investors to rotate funds from high-valuation technology stocks into relatively defensive sectors such as healthcare and consumer-focused businesses.

Global technology stocks under pressure

The sell-off spread rapidly across major global markets, impacting technology and semiconductor companies.

United States

The tech-heavy Nasdaq Composite declined 1.32%, with several major technology stocks recording losses.

Alphabet (GOOGL) fell 5%, erasing more than $110 billion in market value.

Amazon (AMZN) declined 4.8%.

Broadcom (AVGO) dropped 4.67%.

Asia

Technology-led selling pressure also weighed heavily on Asian markets.

South Korea's Kospi index fell more than 3%, dragged down by chipmakers SK Hynix and Samsung Electronics.

Japan's Nikkei 225 declined 3.6% amid selling in technology and investment-related stocks.

Indian IT stocks among major losers

In India, gains in defensive sectors such as pharmaceuticals helped keep the benchmark Nifty 50 relatively stable. However, technology stocks witnessed significant selling pressure.

The Nifty IT index recorded sharp losses, led by:

Infosys: -6.75%

Tech Mahindra: -2.63%

HCL Technologies: -2.59%

Tata Consultancy Services (TCS): -2.24%

Investors shift focus from growth to profitability

Market experts said the correction reflects a broader shift in investor sentiment, with markets increasingly focusing on profitability, revenue generation and long-term sustainability rather than growth expectations alone.

Analysts believe the latest sell-off serves as a reminder that investors are becoming more selective in evaluating AI, semiconductor and data center companies as the sector enters its next phase of development.