Sinking AI stocks pull Wall Street further from its record

Wall Street is falling further from its record high on Tuesday as shares in artificial-intelligence (AI) companies continue to decline. The S&P 500 dropped 0.5 percent, setting the stage for a third consecutive modest loss since reaching its all-time high on Thursday. The Dow Jones Industrial Average slipped by 56 points, or 0.1 percent, at 12:25 p.m. Eastern time, while the Nasdaq composite index was 1.1 percent lower.

Companies that have thrived in the AI boom are now experiencing volatility due to fears that their valuations were inflated during the AI frenzy. If the demand for memory, processors, and other components of data centers does not meet expectations, these stocks might face challenges. Micron Technology experienced the steepest decline, falling by 7 percent, and it was among the most significant weightings on the S&P 500.

Additionally, chipmakers Nvidia and Broadcom also saw their stocks drop by 2.4 percent and 2.9 percent respectively. Despite these recent fluctuations, these stocks continue to be major winners, with Micron Technology alone having more than tripled in value this year. However, even with these recent declines, AI-related stocks remain substantial gainers, with Micron Technology leading the way.