A difficult week for artificial intelligence as shares fall but no crash yet

People are less excited about artificial intelligence shares, but is this the end of the high prices? Also, California wants to tax rich people.

Published 30 June 2026 175 words
TECHNOLOGY A2
A difficult week for artificial intelligence as shares fall but no crash yet

The stock market has had a tough week because of artificial intelligence (AI). Many important AI companies saw their share prices drop. This caused other markets around the world to fall too.

Some people worry that this is the start of a big problem for AI companies. However, it might not be the end of AI's success. The share prices of companies like Alphabet and Samsung fell, which is why the global market also went down. This shows how much the technology business affects the world's economy.

The big drop for chip companies Samsung and SK Hynix happened because investors were worried. They were concerned about how much money these companies are spending and if people will buy fewer of their computer chips. These companies are very important for South Korea's economy.

Even though some tech company shares fell, many have still grown a lot this year. For example, some chip companies' shares have become three times more valuable since January. This has helped other stock markets go up. This recent fall has caused problems, but it has not cancelled all the gains made this year.

Vocabulary

artificial intelligence — computer systems that can perform tasks that usually need human intelligence.
share prices — the value of a small part of ownership in a company.
global market — the system for buying and selling goods and services between countries.
computer chips — small electronic parts used in computers and other devices.
investors — people or groups who put money into businesses hoping to make a profit.
economy — the system of how money, industry, and trade are organised in a country or region.

Discussion Questions

  1. Why did the stock prices of AI companies fall?
  2. What effect does the technology business have on the world's economy?
  3. Do you think artificial intelligence will continue to be successful in the future?

Based on an article from The Guardian.

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