Cloudflare, Inc. shares moved sharply lower in premarket trading on Tuesday after a major outage disrupted some of the world’s most widely used internet platforms. According to multiple reports, apps including X, ChatGPT, PayPal, and Uber experienced widespread 500 errors tied to Cloudflare’s infrastructure.

Cloudflare outage hit major platforms and tech stocks, with Nvidia, AMD and others falling as Nasdaq slid 1.2% and AI ETFs dropped over 2%.

Nvidia and Microsoft unveil a massive AI partnership with Anthropic, Home Depot reduces its full-year sales outlook, and Cloudflare reports widespread outages.

Major U.S. equities indexes extended their slide Tuesday afternoon, amid worries about an AI bubble. The Dow Jones Industrial Average and Nasdaq were down about 1%, while the S&P 500 fell 0.6%. Home Depot ( HD) shares fell 4% after the home-improvement retailer reported disappointing third-quarter earnings and cut its full-year profit outlook.

Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm's edge computing platform, Workers, leverages this network by providing clients the ability to deploy and execute code without maintaining servers.

As of the latest update, Cloudflare has managed to restore services fully. Users most affected ranged from OpenAI’s ChatGPT, Elon Musk’s X, and various online gaming platforms. This is to be expected given that Cloudflare’s Content Delivery Network (CDN) service is used by 20.4% of all the world’s websites, according to Tuesday’s W3Techs’ data.

Cloudflare, Inc. (NYSE: NET) is one of the stocks related to the AI space that Jim Cramer discussed. Cramer highlighted the company’s solid earnings and its potential to “get more profitable,” as he commented:

Cloudflare's revenue growth was above 30% YoY, defying a weak macro environment and benefiting from AI-driven demand. Read why I upgrade NET stock to Hold.

US stocks retreated on Tuesday as worries about an AI bubble and the broader US economy continued to set markets on edge, with a pivotal Nvidia earnings report and shutdown-delaye