A big tech sell-off is hitting the market, which is bad for investors holding AI-heavy stocks like Tesla and Alphabet.

• Tesla dropped about 15% and Alphabet fell hard, with the biggest tech companies losing almost $800 billion in a single day.
• Investors are turning against huge AI spending; Alphabet plans to spend $200 billion this year, and that used to lift stocks but now gets punished.
• Oil surged past $100 and stocks fell as the Iran conflict pushes up bond yields, interest rates, and inflation fears.
• Elon Musk pitched Tesla as an AI and robotics company promising future abundance, and said retail investors take the long view — framed here as hype meant to keep the stock pumped.
• AI is still burning cash, running data centers and chatbots at a loss, with no clear path yet to making the money back.

Outlook: If AI spending keeps rising without profits and the war keeps oil high, more sharp drops in tech stocks are likely.