AI Tech Selloff Sends Nasdaq Down 1.1%

AI investment is creating opportunities for memory and chip suppliers, but also heightening concerns about valuations and dependence on continued data-center spending. Penguin Solutions is developing CXL-based servers that expand memory available for AI workloads and could help ease GPU memory bottlenecks, while Marvell is expanding custom-chip sales to major cloud companies as its data-center business grows. At the same time, analysts warn that concentrated semiconductor funds—especially those heavily weighted toward Nvidia—could be vulnerable if hyperscalers slow AI infrastructure spending, even as one broad-market measure puts the risk of an AI bubble bursting relatively low. Recent market swings and questions about whether Big Tech’s AI investments will produce sufficient returns underscore that uncertainty; valuations also vary, with Greater Bay Area AI Computing Tech trading above the wider IT-sector sales multiple but below the average for AI-infrastructure peers.