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Tech Stocks Face Major Declines as AI Hype Fades

Semiconductor giants like Intel and Nvidia suffer significant losses amid reassessment of AI investments.

  • Semiconductor stocks, including Nvidia and Intel, have seen dramatic declines, with Intel experiencing its worst day in 50 years.
  • Analysts warn of a potential further drop of 15% to 25% in tech stock values.
  • Investors are shifting focus from overpriced tech stocks to small-cap stocks in anticipation of potential interest rate cuts.
  • Intel's struggles continue despite substantial subsidies from the Biden administration's Chips Act.
  • Major tech companies like Amazon, Meta, and Microsoft have tempered expectations for immediate returns on AI investments.
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