Tech Stocks Tumble Amid AI Demand Concerns and Market Uncertainty

The Nasdaq Composite dropped over 1% on Monday, driven by concerns about the future demand for AI technology. Big tech stocks, especially Nvidia, faced significant losses as investors awaited Nvidia's quarterly results. Microsoft responded to potential oversupply by adjusting data center expansions, adding to market uncertainty.

The Nasdaq Composite experienced a significant dip on Monday, dropping over 1%, primarily due to the faltering demand for technology supporting artificial intelligence. With market participants anxiously awaiting Nvidia's quarterly results, uncertainties over the future of AI technology loomed large.

This downturn also marked a slight decline in the S&P 500, its third consecutive day, while the Dow managed a minor gain. Investors are increasingly concerned about Nvidia's high-priced AI chips and the pressures sparked by low-cost alternatives like those from China's DeepSeek.

Amid these tumultuous market developments, Microsoft's decision to adjust its data center expansions led to further jitters. The tech sector, led by companies such as Nvidia and Amazon, witnessed notable declines, reflecting broader anxieties about economic and inflationary pressures.

(With inputs from agencies.)