Meta, Nvidia Lead Tech Sell-Off as AI Spending Fears Rattle Wall Street, But Gene Munster Sides With Musk

Tech stocks fell sharply Thursday as worries about artificial intelligence spending hit Meta Platforms and Nvidia, though Deepwater Asset Management’s Gene Munster argued the AI cycle is still early. Munster said he agrees with comments from Elon Musk, Mark Zuckerberg and Nvidia’s Jensen Huang that the industry remains in the initial stage of the AI buildout. The Nasdaq Composite slid 2.6%, its steepest drop since June; Meta fell about 7%, Nvidia about 4%, and SpaceX tumbled roughly 9%. The Philadelphia Semiconductor Index dropped 6.7% as investors questioned AI infrastructure returns and financing costs. Reuters also noted Meta reported $64.6 billion in quarterly revenue but negative free cash flow of $2.12 billion, with 2026 capex projected at $135 billion–$145 billion.