[CNA Digital] CNA Explains: Why are AI stocks tumbling when demand is still booming?

Professor Anthony Tung from NUS Computing’s Department of Computer Science was quoted in CNA’s explainer on why AI stocks are falling despite strong chip demand and continued investment by technology giants.

Prof Tung highlighted a gap between the pace of infrastructure spending and businesses’ ability to put AI to practical use. Adoption remains concentrated in tasks such as drafting, summarising and assisting programmers, with more limited use in core operations in manufacturing and healthcare. In these sectors, scarce data, greater accountability and the high cost of mistakes make adoption more challenging. Smaller businesses also face constraints in technical expertise and resources.

While companies are building infrastructure for demand anticipated several years ahead, organisations need time to adapt their processes and people. Prof Tung cautioned that slower adoption could lead to corrections in valuations and spending. He added that the infrastructure would remain useful as AI advances, but questions remain over who bears the cost while demand catches up.

CNA (19 Oct 2026): "CNA Explains: Why are AI stock tumbling when demand is still booming?"