Nasdaq Faces 30% Crash Warning Amid Mounting AI Spending Concerns
Market experts warn that the Nasdaq Composite could plummet up to 30 percent if artificial intelligence spending fails to deliver expected returns.
Nasdaq Faces 30% Crash Warning Amid Mounting AI Spending Concerns
Market experts warn that the Nasdaq Composite could plummet up to 30 percent if artificial intelligence spending fails to deliver expected returns.
Nasdaq Composite Could Fall Amid AI Spending Scrutiny
Financial markets are facing renewed scrutiny over artificial intelligence investments as prominent analysts issue stark warnings about equity valuations. WisdomTree’s Jeremy Siegel has warned that the Nasdaq Composite could fall as much as 30 percent. This potential market downturn risk grows significantly if corporate AI spending fails to deliver expected returns.
The timing of the warning coincides with the 39th anniversary of Black Monday. During this period, global financial markets are actively testing whether artificial intelligence sectors can regain their previous market momentum. Concentration risk has become a central point of exposure for investors heavily weighted in technology equities.
Semiconductor Stocks Under Pressure
The broader technology sell-off has heavily impacted semiconductor equities across global markets. Financial firm BTIG has advised investors to use any market rebounds in semiconductor stocks to cut their exposure. The firm expects a drawn-out decline in the sector that could potentially stretch well into 2027.
This cautious outlook follows a sharp 11.4 percent weekly drop in the Philadelphia Semiconductor Index, marking its steepest decline since April 2025. Similar downward pressures have affected dedicated exchange-traded funds, including the iShares Semiconductor ETF, reflecting a broader cooling in the chip sector.
Global Market Contagion and Losses
The cooling sentiment around artificial intelligence has also rippled through international exchanges. According to Protos, the Chinese stock market index CSI 300 lost 3.4 percent in a recent week, marking its 10th consecutive weekly decline. This represents the longest losing streak for the index since its creation in 2005.
Chipmakers and artificial intelligence companies that previously fueled Beijing’s spring rally are now leading the broader sell-off. China’s STAR 50 index, which consists of more than 30 percent AI-focused firms, has lost 40 percent of its value since June 30, highlighting the international scale of the technology correction.
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