Tech Stocks Slide on Oct. 22 as AI Trade Weakens

Technology stocks fell across major markets on Thursday, Oct. 22, 2026, as investors reassessed artificial intelligence-related investments following quarterly earnings from Meta and Tesla. Semiconductor manufacturers led declines in the United States, while rising crude oil prices and mounting pressure on Chinese equities added to concerns across global financial markets.

According to Yahoo Finance, Meta shares dropped 6% during Thursday's trading session, while Tesla recovered from early losses. However, CNBC reported that Tesla's disappointing forecasts continued to weigh on investor sentiment despite better-than-expected third-quarter results.

The technology sector, tracked by the Technology Select Sector SPDR Fund (XLK), declined alongside chipmakers Nvidia, Advanced Micro Devices, Micron Technology, and South Korea's SK Hynix. The sell-off reversed gains recorded by semiconductor stocks on Wednesday.

Lam Research, a manufacturer of semiconductor production equipment, fell as much as 10% after management highlighted supply chain constraints heading into 2027. The company's warning added to pressure on an industry that has attracted substantial investor interest from expectations surrounding AI infrastructure spending.

Lam Research management identified the operational challenge as "supply chain constraints," according to Yahoo Finance.

Tesla also faced scrutiny over its outlook. CNBC reported that lower average vehicle selling prices and battery supply limitations weighed on revenue, despite the company's stronger-than-expected third-quarter results. Chief Executive Elon Musk also cautioned that the company's Robotaxi fleet would have limited impact during the current quarter.

Musk said the Robotaxi fleet was "not going to move the needle" this quarter, according to CNBC's earnings coverage.

Former Tesla board member Steve Westly told CNBC that Musk needed to expand the company's self-driving and robotics operations to justify its $1.6 trillion valuation. Investors appeared more concerned about Tesla's forward-looking projections than Meta's quarterly sales performance.

Meta initially gained in extended trading on Wednesday after reporting quarterly sales above expectations, but its shares subsequently turned lower. CNBC also reported that the company offered Mark Zuckerberg a new class of stock as part of an arrangement intended to keep him in California for eight years and help him manage the so-called California Wealth Tax.

Oil markets moved in the opposite direction as geopolitical concerns drove crude prices higher. Brent crude futures reached $112 per barrel, their highest level in five months, while West Texas Intermediate traded near $100, according to Yahoo Finance.

The price increases followed a New York Times report that the United States and Israel had developed plans for renewed strikes against Iran after the November midterm elections. Citing unnamed U.S. officials, the newspaper described the proposed operation as a "short but intensive" campaign.

Separately, CNBC reported that the U.S. State Department had ordered non-emergency government employees to leave Saudi Arabia amid Houthi attacks on the kingdom.

Chinese equities also came under pressure. The CSI 300, which tracks 300 major companies listed in Shanghai and Shenzhen, fell into bear market territory after declining 20% from its June peak. CNBC reported that the benchmark had fallen for ten consecutive weeks.

Despite the downturn, data reviewed by CNBC showed sovereign wealth fund investment in China had increased 190% from 2025, indicating that substantial institutional capital was returning to the market even as share prices weakened.

In Europe, Nestle shares advanced after the consumer goods company exceeded third-quarter sales forecasts. Barclays shares declined after quarterly profit missed expectations, while the British bank planned to eliminate 5,000 jobs during the year. Technology company SAP also faced selling pressure despite raising its sales outlook.

Elsewhere in technology, Nvidia Chief Executive Jensen Huang told CNBC that demand for neocloud services was "off the charts." Nevertheless, shares of cloud computing providers CoreWeave and Nebius faced renewed pressure in premarket trading, with declines of more than 5% anticipated for both companies. Nvidia, Intel, and Qualcomm also traded lower before the U.S. market opened.

Huang's assessment underscored the contrast between continued demand for AI computing infrastructure and investors' growing sensitivity to company forecasts, supply constraints, and valuations.

Separately, CNBC reported that a security vulnerability in PHP, an open-source programming language used to operate websites, had prompted warnings from governments worldwide. The flaw could allow attackers to take control of servers, potentially exposing blogs, online stores, and news websites to disruption. Google, OpenAI, and Amazon were involved in efforts to identify the vulnerabilities and protect affected systems.

Political tensions also surfaced in a social media exchange involving Elon Musk and James Talarico, the Democratic nominee seeking a U.S. Senate seat from Texas. Musk had posted, "There is something deeply wrong with Talarico," prompting Talarico to respond publicly.

Talarico wrote, "There is something deeply wrong with a political system that allows one trillionaire to buy his own personal U.S. Senator," according to CNBC.