From the developers of AI applications to the suppliers of critical AI components, nearly every company related to artificial intelligence saw its valuation soar in 2024. So far this year, however, many of those valuations have taken a price cut.

All this explains why the Nasdaq Composite index has entered correction territory. As of Monday's market close, the index was down 13% from its most recent high achieved on Dec. 16 last year. A drop of 10% to 20% in a major index qualifies as a stock market correction, and it remains to be seen how long the ongoing one may last.