The post The AI mirror just turned on tech and nobody likes the reflection appeared on BitcoinEthereumNews.com.

Tech just got hit with a different kind of selloff. Not the usual rates tantrum, not a recession whisper, not even an earnings miss in the classic sense. This was the market staring into an AI mirror and recoiling at its reflection. The Nasdaq did what it does when confidence cracks. It did not “rotate.” It dropped the trapdoor. And the S&P followed like a responsible chaperone, pretending it is diversified while tech still drives the bus. The spark was AMD, and the lesson was simple. In bull markets, “good” numbers are not good if the crowd has already prepaid for the celebration. When expectations become a towering skyscraper, even a strong quarter feels like a low ceiling. The market did not punish AMD for being weak. It punished it for not being magical enough to justify the premium oxygen it was breathing. This is the part most people miss. A lot of this selling is not valuation work. It is positioning work. It is the market unwinding a story that got too clean, too crowded, too smug. When everyone is leaning the same way, the smallest wobble becomes a shove. And the shove spread fast. The tape did what it always does when narrative control breaks. It went indiscriminately. Yesterday’s heroes got treated like yesterday’s news. The former AI high flyers bled alongside the hardware names, the “picks and shovels” got dragged into the mud with the miners, and the whole complex traded like one giant risk bucket being emptied by a nervous bartender at last call. This is not just a chip story. The real tremor is in software, and it is psychological. The market is now entertaining a new fear. Not that AI will lift all boats, but that it will drill holes in the boats that…

---

Filed under: News - @ February 5, 2026 12:21 am