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Tech Stocks Struggle as AI Valuations Dwindle Amid Market Volatility

KVIA•Friday, June 26, 2026 at 12:15 PM•CNN Newsource

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AI Summary

Recent fluctuations in the tech stock market have left investors frustrated, particularly in the AI sector, where high valuations have not translated into expected profits. The Nasdaq is projected to decline by 1.2%, marking a more than 6% drop from its peak in June. While demand for AI technology remains strong, companies are incurring substantial costs to develop it, leading to a divergence in performance between chipmakers and tech giants like Microsoft and Meta, both of which have seen significant losses. OpenAI is even considering postponing its IPO due to the current market instability. As rising bond yields and potential interest rate hikes loom, the tech sector's future remains uncertain, though non-tech sectors have shown resilience this week.

Key Details: • Nasdaq expected to drop 1.2%, down over 6% since June peak. • Microsoft and Meta have lost a fifth of their value recently. • OpenAI may delay IPO due to market volatility. • Non-tech sectors are performing well despite tech struggles.

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