{
  "id": 17762119,
  "title": "AI Stocks Fall Up To 5% As Nasdaq Sell-Off Hits E2E Networks, ESDS Software",
  "url": "https://urgent.news/2026/11/02/ai-stocks-fall-up-to-5-as-nasdaq-sell-off-hits-e2e-networks-esds",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-02T06:41:26.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/business/ai-stocks-fall-up-to-5-as-nasdaq-sell-off-hits-e2e-networks-esds-software"
  },
  "original_language": "en",
  "account": "Shares of Indian AI-linked companies fell up to 5% on Monday, in the wake of a major sell-off in US technology stocks. This sparked worries about the valuation of these companies and the increasing costs of AI infrastructure. The decline came after a 3% drop in the Nasdaq Composite on Friday, the largest single-day loss since June. The S&P 500 also slipped 1.8%.\n\nInvestors are now questioning whether the significant investments in AI infrastructure will actually yield profitable returns. SEBI has plans to develop an AI model for India's stock markets.\n\nE2E Networks fell further, hitting a 5% lower limit for the second day in a row. ESDS Software Solutions declined over 3%, while MTAR Technologies dropped more than 5%, continuing its previous session's decline. Black Box, a provider of technology infrastructure and digital solutions, also dropped over 1%.\n\nThe domestic market declines followed a weakness in global technology shares. Concerns have emerged over the profitability of large-scale AI investments, with more than $2 trillion erased from the Nasdaq 100's market value in October. Investors are closely examining spending on data centers, advanced chips, electricity supply, and computing infrastructure.\n\nDespite the growing demand for AI services, there is still uncertainty about whether the resulting revenues will justify the substantial capital expenditure. There is also growing worry about the increasing reliance on debt to finance AI infrastructure expansion, which could make technology companies more vulnerable to economic changes. This sell-off demonstrates how global uncertainty surrounding AI investments can affect investor sentiment towards Indian technology infrastructure businesses.",
  "summary": "Shares of Indian artificial intelligence (AI)-linked companies declined up to 5% on Monday, following a sharp sell-off in US technology stocks that raised concerns about valuations and rising infrastructure expenditure. The weakness followed a 3% decline in the Nasdaq Composite on Friday, its steepest single-session fall since June. The S&P 500 also slipped 1.8%. Investors are increasingly…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}