#GlobalTechSell-OffHitsRiskAssets
The Valuation Test for Tech Giants: AI Spending Under the Microscope
Global markets are navigating a critical turning point where excessive optimism in the technology sector is giving way to a cautious realization. This sell-off wave, which gained significant momentum in February 2026, is not merely a price correction; it is a reflection of deep-seated concerns regarding the return on investment (ROI) speed of Artificial Intelligence (AI) initiatives.
Core Dynamics of the Sell-Off
Capital Expenditure (CAPEX) Pressure: Massive investment plans exceeding $200 billion for AI infrastructure by giants like Alphabet and Amazon for 2026 are increasingly perceived by investors as "margin pressure." The impact of these high costs on short-term cash flows is leading to a reassessment of premium valuations in tech stocks.
Sectoral Rotation: Investors are shifting away from tech and growth-oriented stocks toward more defensive, cash-rich traditional sectors. This trend is causing tech-heavy indices to decouple negatively from the broader market.
Macroeconomic Data and Labor Market: Weak employment data from the US is signaling a loss of momentum in economic growth, acting as a catalyst that accelerates the flight from risk assets.
The Chain Effect on Risk Assets
This wave of selling is not confined to stock market corridors. Digital assets and the cryptocurrency market are also taking their share of this liquidity contraction. Crypto assets, which have shown an increased correlation with tech stocks, are experiencing sharp pullbacks in line with the deterioration in global risk appetite. In particular, anxieties over existing software business models being "displaced by AI" are causing sell-offs to spread across the entire sector.
Analysis Note: The market is currently seeking an answer to the question: "Is AI a productivity tool, or a revolution that will swallow today's software giants?" This uncertainty may cause volatility to remain elevated for some time.
Future Projection
In the coming period, it will not be enough for companies to simply invest in AI; they will need to demonstrate tangible revenue growth (monetization) derived from these investments. As markets transition from the "narrative" phase to the "financial data" phase, risks appear to persist for growth-oriented companies with high debt levels and those struggling to generate net profit.
The Valuation Test for Tech Giants: AI Spending Under the Microscope
Global markets are navigating a critical turning point where excessive optimism in the technology sector is giving way to a cautious realization. This sell-off wave, which gained significant momentum in February 2026, is not merely a price correction; it is a reflection of deep-seated concerns regarding the return on investment (ROI) speed of Artificial Intelligence (AI) initiatives.
Core Dynamics of the Sell-Off
Capital Expenditure (CAPEX) Pressure: Massive investment plans exceeding $200 billion for AI infrastructure by giants like Alphabet and Amazon for 2026 are increasingly perceived by investors as "margin pressure." The impact of these high costs on short-term cash flows is leading to a reassessment of premium valuations in tech stocks.
Sectoral Rotation: Investors are shifting away from tech and growth-oriented stocks toward more defensive, cash-rich traditional sectors. This trend is causing tech-heavy indices to decouple negatively from the broader market.
Macroeconomic Data and Labor Market: Weak employment data from the US is signaling a loss of momentum in economic growth, acting as a catalyst that accelerates the flight from risk assets.
The Chain Effect on Risk Assets
This wave of selling is not confined to stock market corridors. Digital assets and the cryptocurrency market are also taking their share of this liquidity contraction. Crypto assets, which have shown an increased correlation with tech stocks, are experiencing sharp pullbacks in line with the deterioration in global risk appetite. In particular, anxieties over existing software business models being "displaced by AI" are causing sell-offs to spread across the entire sector.
Analysis Note: The market is currently seeking an answer to the question: "Is AI a productivity tool, or a revolution that will swallow today's software giants?" This uncertainty may cause volatility to remain elevated for some time.
Future Projection
In the coming period, it will not be enough for companies to simply invest in AI; they will need to demonstrate tangible revenue growth (monetization) derived from these investments. As markets transition from the "narrative" phase to the "financial data" phase, risks appear to persist for growth-oriented companies with high debt levels and those struggling to generate net profit.
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