Tech Stocks Dip as AI Doubts Linger on Wall Street

Tech stocks fell in February 2026 as investor skepticism over AI’s long-term profitability triggered a broad selloff among major tech firms. Morgan Stanley’s Dan Skelly cited excessive AI capital expenditures as a key concern, pressuring valuations amid uncertain returns on massive infrastructure investments. The downturn reflects Wall Street’s growing anxiety over whether AI-driven growth can justify soaring spending by hyperscalers and chipmakers. Skelly warned that sustained valuation pressures may persist unless companies demonstrate clearer paths to monetizing AI at scale beyond current hype. The selloff underscores a shift from blind optimism to scrutiny over AI’s economic viability, signaling potential volatility for tech-heavy portfolios.