AI Stock Shake-Up: Tech Selloff, $10B Cloud Deal & Intel’s $9B Lifeline (Aug 23–24, 2025)
A months-long AI-fueled stock rally hit a sudden speed bump heading into the weekend. After soaring to record highs, U.S. tech shares pulled back sharply as investors locked in gains and grew uneasy about lofty valuations ts2.tech ts2.tech. The tech-heavy Nasdaq slid roughly 2%+ by mid-week, led by high-flyers like Nvidia and Palantir tumbling 5–16% from recent peaks reuters.com ts2.tech. Warnings of an AI bubble added to the jitters: an MIT study found 95% of firms see no returns on their AI spending, and even OpenAI’s CEO Sam Altman cautioned that investors might be “overexcited” about AI’s short-term payoff ts2.tech. “The [Altman] comments may have been a wake-up call for investors, sparking a sharp pullback in high-flying names,” noted Ipek Ozkardeskaya of Swissquote after Altman deemed some AI valuations “insane” theguardian.com. AI chipmaker Nvidia fell over 3% this week, while other AI-linked stocks like Arm, Oracle and AMD lost ground, and Palantir – an “AI darling” of 2025 – plunged nearly 10% theguardian.com. Market strategists urged perspective. “When you have overcrowding and such strong performance, it doesn’t take much to see an unwind,” explained Keith Lerner of Truist, noting that traders were also bracing for the Fed’s Jackson Hole meeting