A wave of sharp losses hit a group of the most prominent American technology companies, after SpaceX lost a huge part of its market value in just a few weeks. IBM's shares recorded the largest daily drop in the company’s history, and pressure extended to software and digital services companies amid investor concerns about the inflation of spending on artificial intelligence and shifting corporate budgets away from traditional software.

SpaceX falls below its IPO price for the first time

According to a report published by Reuters, SpaceX's shares fell during trading to $132.28, falling for the first time below the public offering price of $135. After that, it reduced its losses and closed at $135.27, down 0.6%. The drop came just over a month after the company’s listing on the stock exchange, after its market value exceeded $2.6 trillion during the peak of its rise, before falling to about $1.78 trillion. This means that around $82 billion has evaporated from its value since the peak. Joining the Nasdaq 100 index did not stop the decline, as it lost about 13% since being included in the index, with growing concerns about debt and large spending on artificial intelligence projects and technical infrastructure.

IBM Loses a Quarter of Its Value in One Session

IBM shares fell by 25%, recording the worst daily loss in the company’s history, after its financial forecasts came in lower than investors' estimates. The management admitted that it did not anticipate how quickly customer spending would shift from software services to artificial intelligence chips, servers, storage units, and data center equipment. This transition led to delays in software deals and a squeeze on the company's revenues. The sell-off extended to shares of other software companies and technology service providers after IBM’s results raised concerns that the race to build AI infrastructure could deplete budgets for digital programs and services.