U.S. technology stocks are experiencing a notable pullback, revealing potential vulnerabilities in the recent surge fueled by artificial intelligence. After months of strong gains driven by optimism around AI innovation, investors are beginning to reassess valuations, with some warning that the sector may have become overextended. A growing number of funds have started reducing exposure to top tech names, shifting capital toward more defensive or undervalued areas of the market. The retreat comes amid rising concerns about sustainability in AI-driven growth, as well as increasing scrutiny on the pace of real-world adoption and profitability. While AI remains a central theme in tech investing, the recent downturn underscores that even the most hyped sectors are not immune to market corrections and profit-taking.