TS Lombard Warns AI Spending Collapse Could Trigger 30% S&P 500 Decline

TS Lombard reportedly warns that a collapse in artificial intelligence investment could trigger a 30% decline in the S&P 500, potentially erasing approximately $20 trillion in US stock-market value.
The warning comes as semiconductor stocks have reportedly fallen nearly 20% over the past 14 trading sessions, highlighting growing pressure on AI-related investments.
The concern extends beyond chipmakers. Large technology companies carry substantial weight in major US indexes, meaning a broad AI valuation correction could affect the wider equity market.
However, the 30% decline is a hypothetical risk scenario, not a confirmed forecast. The estimated market value impact and semiconductor drawdown require verification against the relevant benchmarks.