Over the past fortnight, global tech stocks have witnessed net sales totaling approximately $20 billion, a clear sign of substantial selling pressure. The selling intensity in the Technology, Media, and Telecommunications (TMT) sector has neared levels observed in July of this year. Moreover, the volatility spread between the Nasdaq 100 and the S&P 500 indices has surged to nearly five-year peaks, underscoring a marked increase in market aversion to risk within the tech sector.

Since the start of the year, debt financing for AI infrastructure has surpassed $500 billion, with financing costs escalating for hyperscale cloud service providers. The market is closely scrutinizing the ability of leading tech firms to convert AI capital expenditures into revenue, as reflected in their financial reports, along with the sustainability of financing for future investment expansions.

Relevant institutions suggest that the financing interconnections between Nvidia and GPU operators could potentially serve as a conduit for credit risk transmission. Nevertheless, they maintain a positive outlook on the fundamental prospects of the tech sector, predicting a possible buying opportunity in early November. Key indicators to monitor encompass position liquidation, earnings realization, and the narrowing of credit spreads.