AI stocks undercut markets worldwide as oil climbs to its highest price since May

NEW YORK (AP) — Drops for stocks in the artificial-intelligence industry are dragging markets down worldwide on Thursday, while oil prices hit their highest levels since May on worries about the war with Iran.The S&P 500 tumbled 1.4% following even sharper losses in Asia, whose markets are full of AI and other technology stocks. The Nasdaq composite was down 2.2%, as of 10:45 a.m. Eastern time, but stocks outside of tech did better, and the Dow Jones Industrial Average was down a more modest 0.6%, or 295 points.AI-related stocks have been shaky on worries that their boom may be under threat because of how expensive it’s become to borrow money to build data centers and buy more AI chips. Concerns also remain that stock prices simply shot too high in their yearslong frenzy, even though companies in the industry continue to report growth.Lam Research, whose equipment and services help make semiconductors, reported gains in profit and revenue for the summer that were slightly stronger than