--- title: "Panic spreads, and selling is triggering more selling" description: "Anxiety in tech stocks has triggered a chain sell-off, with the market shifting from optimism to caution regarding the AI narrative. Software and chip stocks plummeted (AMD down 17%), impacting global" type: "news" locale: "en" url: "https://longbridge.com/en/news/274981483.md" published_at: "2026-02-05T13:26:16.000Z" --- # Panic spreads, and selling is triggering more selling > Anxiety in tech stocks has triggered a chain sell-off, with the market shifting from optimism to caution regarding the AI narrative. Software and chip stocks plummeted (AMD down 17%), impacting global assets and creating a negative feedback loop. The core of the market sentiment shift lies in the perception of AI as a threat to business models rather than merely a growth driver, leading to a nearly $1 trillion evaporation in market value for the software sector over the week; at the same time, Alphabet's capital expenditure plan has doubled to approximately $180 billion, intensifying concerns about whether high investments can yield returns **The anxiety in the technology sector is triggering a chain reaction, with investors reversing their views on artificial intelligence and its disruptive impact, leading to significant market volatility.** Against this backdrop, the sell-off in the software industry has rapidly spread to chip manufacturers and giant tech stocks, resulting in a self-reinforcing selling pressure that has affected global stock markets, cryptocurrencies, and commodity markets. Latest trading shows that the chip industry has become a hard-hit area, with AMD's stock price plummeting 17% and Palantir dropping 12%. Meanwhile, **Alphabet announced that its capital expenditures will double this year, exceeding analysts' expectations by more than 50%**, and this aggressive spending plan has raised concerns in the market about its return prospects, causing its stock price to significantly decline in pre-market trading, although the drop later narrowed, it still remained in a loss state. **This round of sell-off has a strong contagion effect, quickly sweeping across Asian markets overnight.** Affected by the sharp decline in Wall Street chip stocks, the South Korean Kospi index retreated nearly 4%. Meanwhile, volatility is not limited to the stock market, as Bitcoin has fallen below the $70,000 mark for the first time since the 2024 U.S. election, down more than 40% from its peak last October; the precious metals market is also turbulent, with silver prices once plummeting 17%, maintaining a daily decline of around 10%. **Market sentiment is undergoing a profound shift, with investors no longer viewing AI development as a broadly positive factor, but rather beginning to examine its threat to existing business models.** This shift has led to the software industry losing nearly $1 trillion in market value within a week. As panic escalates, a negative feedback loop of selling begetting more selling is forming, with market focus shifting to the upcoming Amazon earnings report and the policy decisions of the European Central Bank and the Bank of England. ## **Reversal of AI Narrative and Rotation of Tech Stocks** This week's market performance paints a grim picture: **investor sentiment towards AI has shifted from unconditional optimism to caution.** The potential threat that AI technology poses to existing businesses has directly led to a severe blow to the software sector, and this anxiety has spread to the hardware manufacturing side. This volatility also reflects the sector rotation that the market is experiencing this year. While tech growth stocks are facing sell-offs, the S&P 500 value index rose for the fifth consecutive trading day on Wednesday, while the growth index declined. The equal-weighted S&P 500 index rose 0.8%, reflecting that funds are flowing back into more cyclical stocks against the backdrop of positive ISM services and manufacturing survey data. ## **Massive Capital Expenditures Trigger Return Concerns** Alphabet's capital expenditure plan disclosed on Wednesday has left the market feeling uneasy. The company expects its capital expenditures this year to reach as high as $175 billion to $185 billion, doubling previous estimates. This aggressive move aims to alleviate computing power bottlenecks and maintain a lead in the AI race. However, the market's reaction has been tepid, with Alphabet's stock price dropping 2% in after-hours trading. This is not the first time investors have felt anxious about the massive AI investment plans of so-called "hyperscale companies." The core of the market's widespread anxiety lies in whether such a huge investment can translate into substantial returns. ## **Macroeconomic Signals and Policy Focus** In addition to the turbulence in tech stocks, macroeconomic data has been mixed. While the ISM data has released positive signals, the ADP private sector job growth fell short of expectations, indicating that hiring activity remains sluggish. Currently, the market is closely watching today's release of job vacancy data and initial unemployment claims. Moreover, investors will also be awaiting Amazon's earnings report after today's market close, marking another critical moment to assess the performance of tech giants ### Related Stocks - [IGV.US - iShares Expanded Tech Software Sector ETF](https://longbridge.com/en/quote/IGV.US.md) - [IGPT.US - Invesco AI and Next Gen Software ETF](https://longbridge.com/en/quote/IGPT.US.md) - [SOXL.US - Direxion Semicon Bull 3X](https://longbridge.com/en/quote/SOXL.US.md) - [GOOGL.US - Alphabet](https://longbridge.com/en/quote/GOOGL.US.md) - [XSW.US - SPDR S&P Software](https://longbridge.com/en/quote/XSW.US.md) - [SOXX.US - iShares Semiconductor ETF](https://longbridge.com/en/quote/SOXX.US.md) - [AMD.US - AMD](https://longbridge.com/en/quote/AMD.US.md) - [GOOG.US - Alphabet - C](https://longbridge.com/en/quote/GOOG.US.md) - [AMUU.US - Direxion Daily AMD Bull 2X Shares](https://longbridge.com/en/quote/AMUU.US.md) - [GGLL.US - Direxion Daily GOOGL Bull 2X Shares](https://longbridge.com/en/quote/GGLL.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | AMD 與 Meta 簽 5 年 AI 晶片訂單 股價升近 9% Meta 可買最多 1.6 億股 AMD | Meta 與 AMD 達成為期五年的合作協議，Meta 將購買 AMD 最新的 AI 晶片，算力最高達 6 吉瓦，交易價值超過 1,000 億美元。同時，Meta 可分階段購買最多 1.6 億股 AMD 股票，AMD 股價因此上漲近 9%。 | [Link](https://longbridge.com/en/news/276821466.md) | | 英偉達業績遠高預期 指引炸裂盤後橫行 | 英偉達公佈 2026 財年第四財季業績，營收 681.27 億美元，同比增長 73%，超出市場預期。數據中心業務貢獻超九成營收，非 GAAP 毛利率升至 75.2%。公司展望下一財季，營收指引為 780 億美元，環比增長 14.5%，高於分 | [Link](https://longbridge.com/en/news/276987566.md) | | Sandisk 與 SK 海力士合作 啟動「HBF 標準化」相關 ETF 急升 14% | Sandisk 與 SK 海力士於 25 日聯合啟動「HBF 規格標準化聯盟」，發布面向 AI 推理時代的 HBF（High Bandwidth Flash）儲存技術標準化戰略。預計到 2030 年，HBF 相關內存解決方案需求將全面擴張。 | [Link](https://longbridge.com/en/news/277005950.md) | | Adobe 影片編輯器推 AI 初剪功能 自動使用素材生成影片 | Adobe Firefly 影片編輯器推出新功能「Quick Cut」，利用 AI 根據用户指令自動編輯素材與 B-roll 生成影片初稿。用户只需用自然語言描述影片效果，工具便能自動整合內容並完成轉場。此功能旨在節省時間，幫助創作者快速找 | [Link](https://longbridge.com/en/news/276994148.md) | | 觀望財案及滙控業績 市場暫未有方向｜古天后 | 2 月 25 日，美股在大型企業合作協議的推動下回升，道指上漲 370 點，標指和納指也有所上漲。Meta 與 AMD 達成合作，Meta 將採購 AMD 晶片並獲得認股權，AMD 股價上漲 8.8%。儘管美股回暖，加密貨幣市場依然疲弱，比 | [Link](https://longbridge.com/en/news/276813442.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.