AI Stock Frenzy Hits Turbulence: Tech Titans Tumble, Chip Wars Heat Up (Aug 21–22, 2025 Roundup)
During Aug 21–22, 2025, the Nasdaq Composite and the S&P 500 tech sector each fell roughly 2% by Wednesday. Ahead of Fed Chair Jerome Powell’s Jackson Hole address, traders de-risked amid hopes of rate cuts. An MIT study found 95% of companies see no returns on AI spending, and OpenAI CEO Sam Altman cautioned investors may be overexcited. Tech stocks traded at about 30× forward earnings, a one-year high, prompting profit-taking and rotation into defensive names. Palantir Technologies entered a six-day losing streak, erasing about 17% of its value and becoming the S&P 500’s worst performer for the week. Nvidia
