Tech stocks in the S&P 500 have taken a major hit this past week, with big names like AMD down 21%, Intuit down 17%, and Micron Technology down almost 13%. Microsoft, Nvidia, and Salesforce have also seen significant losses, with the tech sector overall experiencing a significant downturn.

The market has been favoring value stocks over growth stocks in recent months, leading to an 8.4% increase in the Russell 1000 Value index compared to a 3.7% decrease in the Russell 1000 Growth index. Analysts attribute this shift to “AI fatigue,” indicating a growing skepticism about the impact of artificial intelligence on corporate performance.

Investors’ high expectations for artificial intelligence have led to a sharp sell-off in tech stocks, with even slight disappointments causing significant drops in stock prices. The tech industry is facing concerns that AI technology may disrupt traditional software providers, leading to a significant decline in the IGV Software index.

As technology stocks continue to face uncertainty, investors are urged to consider the changing market landscape and potential risks associated with AI technology. The sudden sell-off in tech stocks highlights the need for caution and a diversified investment strategy in the current market environment.

Read more at Yahoo Finance: There’s a Rout in Tech Stocks. What’s Going On?