Nasdaq Falls 2 Percent While OpenAI and Anthropic Prepare IPOs

The tech-heavy Nasdaq stock index fell around 2 percent during Tuesday afternoon trading as investors sold shares in companies tied to artificial intelligence. Micron Technology shares dropped 12 percent, while Nvidia and Alphabet each declined for a second consecutive day. Intel and Advanced Micro Devices shares each fell more than 5 percent.

Samsung and SK Hynix shares dropped 12 percent apiece in Korean trading. The declines followed a 5 percent drop in Alphabet and a 16 percent fall in SpaceX on Monday. Micron Technology is scheduled to report earnings on June 24.

Analysts are watching the results for evidence that corporate spending on AI infrastructure remains on track. Micron shares had risen about 800 percent over the previous 12 months before the latest decline. Stanford University's AI Index Report recorded more than $580 billion in global corporate AI investment during that period, following more than $1 trillion over the prior four years.

Gil Luria, head of technology research at D.A. Davidson, said the market continues to oscillate between optimism that AI will increase productivity and concern that the spending may not produce adequate returns. Mark Vena, CEO of SmartTech Research, said investors are asking whether returns on the investment will begin to appear.

OpenAI and Anthropic are both considering initial public offerings. The two companies are generating revenue, though questions remain about long-term profitability in generative AI.