5 Major Tech Stocks Have Fallen More Than 50% as Investors Reassess the AI Boom

Five major technology stocks have plunged more than 50% from their summer highs to recent lows amid growing concerns that AI data-center spending could peak in 2027:
- Intel ($INTC): -58%
- Arm Holdings ($ARM): -55%
- SanDisk ($SNDK): -53%
- Oracle ($ORCL): -52%
- KLA Corporation ($KLAC): -52%
The sell-off comes as investors question whether massive AI infrastructure investments can continue at their current pace. JPMorgan estimated that Amazon, Alphabet, Meta, Oracle and Microsoft would spend a combined $900 billion on AI capital expenditures in 2026, potentially exceeding $1 trillion in 2027. Goldman Sachs estimates that debt will finance 33% of AI capex in 2026, rising to 35% in 2027, or roughly $400 billion.
Bank of America analyst Vivek Arya argues that demand remains strong. He points to a backlog exceeding $2.5 trillion and growing enterprise AI adoption, suggesting that limited computing capacity—not excess supply—remains the bigger risk. Third-quarter results also showed AWS revenue rising 39%, Microsoft Azure growing 49% and Google AI revenue increasing more than 100% year over year.
The five stocks face different risks. Intel is still working to strengthen its position in AI chips, Oracle faces concerns over debt and infrastructure spending, and Arm could be vulnerable to slower data-center investment. KLA may face weaker demand for semiconductor manufacturing equipment, while SanDisk is exposed to the cyclical memory market.
Arya also notes that the semiconductor index trades at 16.4 times forward earnings, a 10% discount to the S&P 500, compared with a historical range of a 20% discount to a 40% premium since 2019.
The debate is whether these steep declines reflect a buying opportunity or expectations of an AI spending slowdown. A capex pullback could pressure earnings, but resilient demand and tighter computing supply could also extend the AI investment cycle.