Global Stocks Slide as AI Bubble Fears Trigger Tech Selloff

Global equity markets fell sharply as investors fled technology stocks on mounting fears that the artificial intelligence boom has inflated a bubble, with selling spreading from Wall Street across Asia and Europe. The rout followed the worst day for US tech stocks in 19 months, and analysts warned that further waves of selling could lie ahead.

The selloff was driven by what the Guardian described as "big worries over AI," as investors questioned whether the huge valuations placed on AI-linked companies are justified. The tech-heavy selloff rippled through global markets, with Asia-Pacific and European bourses sliding in sympathy with the US decline. US tech stocks later posted a modest recovery on Wall Street after the steep plunge, though the rebound did little to calm broader concerns about the sustainability of the AI-driven rally.

The volatility has raised the question of whether the AI bubble is bursting, with market participants debating whether the share price plunge marks the start of a deeper market meltdown or a temporary correction. The scale of the move — the worst single day for US tech in more than a year and a half — underscored how sensitive markets have become to any sign that the AI narrative is faltering.

For investors, the episode highlights the concentration risk embedded in portfolios heavily weighted toward technology and AI-related names. The sharp swings suggest that sentiment remains fragile, and that any further deterioration in confidence could trigger renewed selling across global markets. The coming sessions will be closely watched for signs of whether the correction deepens or stabilises.