AI bubble fears send tech stocks plunging

Tech stocks experienced a significant drop on Tuesday as concerns about an AI bubble began to weigh on market confidence. The tech-heavy Nasdaq Composite Index dropped 2.5% and the S&P 500 fell around 1%, with chip memory and data storage stocks taking the hardest hit. This downturn underscores the broader market's unease about the sustainability of recent AI-driven gains, highlighting the potential risks of overvaluation in the sector. The situation matters because it reflects investor sentiment about the future trajectory of one of the fastest-growing tech areas.