Tech and chip makers lose $1 trillion in massive AI sell-off

[jmyrlefuller]

https://mashable.com/tech/tech-chip-makers-stocks-lose-trillion-sell-off

by Matt Binder
July 30, 2026

The 20 most valuable chip stocks have lost $1.3 trillion over the past week after a big sell-off, according to analysis by CNBC.

According to the outlet's data, Nvidia led in losses after investors liquidated $238 billion since the market closed on Friday. There's perhaps no bigger sign that investors are getting cold feet when it comes to artificial intelligence, as Nvidia has benefited more than any other company from the AI boom.

(excerpt)

[Hoodat]

There's perhaps no bigger sign that investors are getting cold feet when it comes to artificial intelligence, as Nvidia has benefited more than any other company from the AI boom.

Nvidia stock is up over 12% in the past 12 months.  Revenue for the last quarter topped $80 billion which is almost double from a year ago.  Their chips are clearly in demand even if investors choose not to buy their stock.  But I'm definitely not selling.  AI isn't going away.  Neither are Big Brother data centers.

[catfish1957]

The Left has made AI and Data Centers the new Boogey Man, for the Chicom's benefit. 

Not surprised we are seeing the beginnings of a Tech correction, especially of the left is successfuli, and all those investments in hardware are for naught. 

[DefiantMassRINO]

Dems don't America to succeed or excel at anything.

What laws are applicable if you build your power generation station and data center on a Native American Reservation?  Are they exempted from all the state and local regulatory agida?

[Timber Rattler]

The bubble finally popping?

[Cyber Liberty]

The bubble finally popping?

The DJIA picked up over 900 for the second day in a row, the NAS was also well into the green.   

[DefiantMassRINO]

The bubble will be in the debt, the creditors, credit default swaps, and private capital markets. 

Contagion would lead to a liquidity crisis in the makets.

Some of these companies have debt-to-equity ratios greater than 100%.  They've gone from cash-flow positive to cash flow negative.

If there is significant delay in data center construction, expansions, upgrades, or re-purposing, that increases the carrying costs of the debt and delays the realization of projected revenue streams.

Compute is G-damned expensive, mainly for electricity.

The high cost will be a barrier-to-entry who use it to create AI kitten pictures and videos, but may provide significant efficiency returns and structural cost reductions for those that can afford it and have legitimate business cases to justify the cost.

Now, Texas has now put a halt on data center construction approvals.

Any state with natural gas, petroleum gas, coal, or nuclear has an opporunity for the data center buildout - like Wyoming, North Dakota, West Virginia, Kentucky, Louisiana, and Oklahoma.  This could be a boon for Red States to steal high-tech industry from Blue States.

Any state that can provide fuel, generation, and transmission - all intrastate - will be able to kick-ass and take names if they fast-track datacenter construction.

Has anyone evaluated locating generation and datacenters in Native American reservations to bypass state and local regulators?

[jmyrlefuller]

The Left has made AI and Data Centers the new Boogey Man, for the Chicom's benefit. 

Ah, yes, the "if we don't, Red China will" canard, one of two talking points I've seen from the Technobros who are trying to force this. (Speaking of boogeymen.) The other, "Soros is funding the opposition." It shows clear signs of political manipulation using focus-group-tested talking points.

By and large, the average American doesn't really want this technology and sees it as a potential career-killer. These data centers will drive up residential electricity rates and don't provide any meaningful jobs; besides, why are they showing up in the middle of nowhere now? What is the benefit to hosting one? Plus, the money to be made in AI is almost exclusively at the top of the corporate ladder, assuming the insane cost and barrier to entry is resolved, which there's no guarantee that will ever happen.

[jmyrlefuller]

What laws are applicable if you build your power generation station and data center on a Native American Reservation?  Are they exempted from all the state and local regulatory agida?

Pretty much, but almost all of them rely on state-regulated power networks, so there's still that piece of leverage. But as far as reservation regulations go, usually it's just a matter of paying off the chiefs. The rank and file are generally environmentalist but the people at the top often use their tribes' insulation from good-government laws and protections to maintain their own interests.

[art.prout]

Ah, yes, the "if we don't, Red China will" canard, one of two talking points I've seen from the Technobros who are trying to force this. (Speaking of boogeymen.) The other, "Soros is funding the opposition." It shows clear signs of political manipulation using focus-group-tested talking points.

By and large, the average American doesn't really want this technology and sees it as a potential career-killer. These data centers will drive up residential electricity rates and don't provide any meaningful jobs; besides, why are they showing up in the middle of nowhere now? What is the benefit to hosting one? Plus, the money to be made in AI is almost exclusively at the top of the corporate ladder, assuming the insane cost and barrier to entry is resolved, which there's no guarantee that will ever happen.

Agreed.  It was very crafty of them to cast the opposition as being tools of Chiner or Soros, very crafty.

[Free Vulcan]

They are talking about a data center in every county in Iowa, they just tried here but the county supervisors put a one year moratorium on it.

The question becomes with that many data centers, how is there enough data to justify their existence? I worked for Walmart corporation, all their millions of transactions per second are processed thru Bentonville their HQ, they do not need one in every county to run the company.

These things don't run on rainbow sprinkles and unicorn magic. They need to have cash flow like everything else, and they are expensive to construct and run. Now introduce the digital currency. With the trillions of dollars PER DAY of digital transactions being made, even a modest 1% fee to handle them would mean trillions to keep these things running.

But that's only the boilerplate. Add drones and FLOCK cameras and suddenly you got plenty of data to pump thru all of these. Drones for govt and law enforcement, drones for 'precision agriculture' and use your imagination. It will be 24/7/365 surveillance but with night vision, FLIR, and whatever other tech they got today. I'm sure they will eventually be weaponized too, all controlled by AI.

George Orwell was amateur hour compared to what this beast system will be.

[roamer_1]

The bubble finally popping?

PTL and pass the potato salad! 

[Free Vulcan]

The bubble finally popping?

The tech guys always crack me up. 'This is coming and we're going to shove it down your throat'.

They sound oh so tough till the finance guy asksthem how this is going to cash flow, to silent rooms and blank stares.

[catfish1957]

Ah, yes, the "if we don't, Red China will" canard, one of two talking points I've seen from the Technobros who are trying to force this. (Speaking of boogeymen.) The other, "Soros is funding the opposition." It shows clear signs of political manipulation using focus-group-tested talking points.

By and large, the average American doesn't really want this technology and sees it as a potential career-killer. These data centers will drive up residential electricity rates and don't provide any meaningful jobs; besides, why are they showing up in the middle of nowhere now? What is the benefit to hosting one? Plus, the money to be made in AI is almost exclusively at the top of the corporate ladder, assuming the insane cost and barrier to entry is resolved, which there's no guarantee that will ever happen.

I am no fan either of AI, but your naivety on this matter basically falls into the left's talking points.  I will ask this....  Is this tool (AI) better suited in our hands or the Chicom's?  Before answering, think it though in therms of 10, 20, 50 years.

[Hoodat]

The Left has made AI and Data Centers the new Boogey Man, for the Chicom's benefit.   

Yep.

[Hoodat]

The question becomes with that many data centers, how is there enough data to justify their existence?

That's not your call.  If companies want to invest in data centers, that's their choice.  It's their money, not yours.

These things don't run on rainbow sprinkles and unicorn magic. They need to have cash flow like everything else, and they are expensive to construct and run. Now introduce the digital currency. With the trillions of dollars PER DAY of digital transactions being made, even a modest 1% fee to handle them would mean trillions to keep these things running.

Again, not your call.  Not your money.

[Hoodat]

By and large, the average American doesn't really want this technology and sees it as a potential career-killer. These data centers will drive up residential electricity rates and don't provide any meaningful jobs; besides, why are they showing up in the middle of nowhere now? What is the benefit to hosting one? Plus, the money to be made in AI is almost exclusively at the top of the corporate ladder, assuming the insane cost and barrier to entry is resolved, which there's no guarantee that will ever happen.

Let me give you a contrary argument.  For me, I consider AI a career saver.  Because the one thing that stands in the way of my company prospering is Peter Principle management.  And this is where AI comes in.  Because the one profession that AI is expertly qualified to replace is management.

So, every time I hear a manager say something about bringing in AI, I crack a smile.  A single AI can replace five managers and unblock all innovation and progress that is currently being blocked by incompetence.  If that happens, we could double our workforce within two years.