Wall Street faced a harsh reality check Tuesday as investors bailed on this year's most overbought tech stocks, erasing over $500 billion in market value in just one day.

At the center of the selloff was Palantir Technologies Inc. (NASDAQ:PLTR), plunging 9.3% by afternoon in New York, even after topping analyst forecasts and raising its full-year outlook.

The reaction speaks volumes about where sentiment now stands: strong earnings are no longer good enough when your stock has already soared 170% in less than a year.

AI Euphoria Cracks: $500 Billion Erased From Wall Street’s Favorite Tech Stocks

After hitting record highs Monday and boasting a 40% year-to-date gain, the Global X Artificial Intelligence & Technology ETF (NYSE:AIQ) slid 3.6% Tuesday, as some of its top-performing holdings erased over half a trillion dollars in what appears—for now—to be a robust pullback.

Nvidia Corp. (NASDAQ:NVDA) dropped 3.7%, losing $180.3 billion

Alphabet Inc. (NASDAQ: