Don't panic yet, investors say, as high-flying AI stocks tumble

By Ankur Banerjee

SINGAPORE (Reuters) -Sharp falls in technology stock prices are cause for caution but not panic yet, say brokers and investors who have been riding a runaway market to record highs and some stretched valuations.

Selling extended into a second day on Wednesday to leave bourses in Seoul and Tokyo around 5% beneath peaks on Tuesday morning. Nasdaq futures were down 0.2% after a 2% fall for the index on Tuesday.

Hardest hit have been the biggest winners of a rally that has vaulted chipmaker, Nvidia, from a niche player to the most valuable company on earth. For now, it’s the speed and not markets’ faith in artificial intelligence that is in question.

“The selloff appears to be largely positioning-driven, with recent outperforming names taking the worst of the move,” said