Tech Stock Volatility at Highest Point Since Dot-Com Crash, UBS Says -- Market Talk

1137 GMT - Technology stocks are more volatile than at any time since the dot-com crash of the early 2000s, UBS analyst Michel Lerner writes. Huge spending from hyperscalers--cloud service and data center providers--on artificial-intelligence infrastructure is eroding the amount of cash companies generate relative to their investments, Lerner says. Large AI investments mean that the six biggest hyperscalers are facing a $227 billion cash shortfall, the analyst says. The turn to negative cashflow is a particular problem for the U.S., given hyperscalers and tech stocks account for 40% of the market. "The U.S. market has never been more exposed to the AI theme." Nasdaq futures rise 0.5%.(josephmichael.stonor@wsj.com)

(END) Dow Jones Newswires

August 07, 2026 07:39 ET (11:39 GMT)