Breaking

Tech Stocks Drop on AI Bubble Fears, Nasdaq Falls 2.5% Early

June 23, 2026 at 10:06 EDT

Infra & Chips
Funding & M&A

On the morning of June 23, 2026, fears about an AI bubble spread across U.S. markets, dragging tech stocks lower. The Nasdaq Composite Index fell 2.5% just after the open and the S&P 500 dropped about 1%, with memory chip and data storage stocks hit especially hard.

June 23, 2026 · Market Selloff

AI Bubble Fears Hammer Tech Stocks

Major US indices slid as memory-chip and storage names led a broad rout. A weak Broadcom AI outlook earlier in June lit the fuse — and a 10% overnight plunge in South Korea's KOSPI poured fuel on it.

−2.5%

Nasdaq Composite at the open

≈ −1%

S&P 500

−10%

KOSPI, prior night (Samsung, SK Hynix)

Memory & storage took the hardest hits

Single-session declines, scaled to size

−12%+

Sandisk

−10%+

Micron

≈ −8%

Seagate / WD

−2.5%

Nasdaq

The Trigger · Broadcom Guidance

AI chip sales outlook came in below the bar — and the selling spread.

Q2 AI sales guidance

≈ $16B

vs. ≈ $17.2B expected

AVGO stock drop

−12 to −15%

Nasdaq −4.18% same session

FY2027 AI target (unchanged)

$100B+

seen as too ambitious

Still Bullish

A pullback in memory names is healthy; faith in AI's long-term potential stays strong. Firms building their own infrastructure should outlast cash-burning rivals.

Sounding Alarms

Bubble warnings from the IMF, Bank of England and Jamie Dimon recur since late 2025. Some draw parallels to the 1999 dot-com bubble — a temporary rebalance, or a deeper shakeout?

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