The Nasdaq Composite had its worst month since March 2025, as investor anxiety over the scale of spending on artificial intelligence weighed on technology stocks.
Nasdaq Composite · Monthly sell-off
Nasdaq posts its worst month since March 2025 as doubts over AI spending weigh on tech
Investor anxiety over whether AI returns will arrive fast enough to justify enormous spending is now shaping how the market prices technology shares.
March 2025
Last time the index had a worse month than this one
1+ year
Span since the sharpest monthly drop for the index
2026
Year-end question: will the index finish in negative territory?
How the sell-off unfolded
A chain reaction from spending to index performance
1. AI spending
Data centers, chips and cloud capacity
→
2. Payoff doubts
Gap between sums committed and revenue generated
→
3. Investor anxiety
Concern moves from the sidelines into the broader market
→
4. Index drop
Heavy tech weighting ripples the decline across the Nasdaq
The case for patience
Short-term pullbacks are a normal part of a major technology cycle
Long-term demand for AI computing remains strong
The drop is not seen by everyone as a verdict on AI itself
The case for concern
Heavy spending followed by slower payoffs could pressure valuations
Companies whose shares already reflect high expectations are most exposed
Revenue growth from AI investment is still the unresolved test
What comes next
The direction of the Nasdaq hinges on whether AI investment turns into revenue
Investors will look to upcoming earnings reports and company guidance for evidence that spending is translating into revenue growth.
Earnings reports
Do results show AI investment producing revenue?
Company guidance
Do forward outlooks support current valuations?
Year-end outcome
Whether 2026 finishes in negative territory remains open
Continue reading The rest of this article is for AI News Blitz readers. Choose an option below to keep reading.
Already purchased? Sign in ✓ Signed in — this article isn’t included in your current plan.Unlocking the full article...