The AI Stock Decline that unfolded in early 2026 has sent ripples through markets, with software, semiconductor, and Big Tech shares shedding trillions in value amid investor unease. This correction follows the explosive gains of 2024-2025, driven by generative AI hype, but recent events have exposed vulnerabilities in the AI investment thesis. Far from a collapse, the AI Stock Decline reflects a healthy repricing after years of exuberance, grounded in verifiable market dynamics, earnings reports, and analyst assessments. The Backdrop to the AI Stock Decline AI stocks surged post-ChatGPT’s 2022 launch, with Nvidia alone delivering massive returns as demand for…