Jeremy Siegel warns Nasdaq could drop 30% if AI spending fails to deliver returns

WisdomTree's Jeremy Siegel warns the Nasdaq Composite could fall up to 30% if AI spending fails to generate expected returns. The risk is heightened by the index's heavy concentration in AI-linked technology stocks. Market volatility this week was driven by concerns over AI financing, hyperscaler debt, elevated oil prices, and a spike in the VIX index. Siegel compares the current AI spending cycle to past episodes where excess capacity eventually compressed returns for major spenders.