Nasdaq-100 in correction as chip and memory stocks sell off
Global chip and memory stocks experienced a sharp sell-off, pushing the Nasdaq-100 into correction territory and the Philadelphia Semiconductor Index into a bear market. Investors are reacting to concerns over AI-related growth and reports of Chinese competition in chip manufacturing.
Why it matters
The volatility in the semiconductor sector reflects broader market anxiety regarding the sustainability of the AI boom and global supply chain shifts.
Chip stocks around the world sold off sharply Tuesday, the latest chapter in the monthslong jitters surrounding artificial intelligence, memory and chip stocks. The sell-off pushed the Nasdaq-100 index into correction territory earlier Tuesday, which is a drop of 10% or more from its most recent record high. The index, which tracks the top 100 nonfinancial companies traded on the Nasdaq exchange, ended the day down 1%. The Philadelphia Semiconductor Index on Tuesday sank into bear market territory, which is a 20% drop or more from its most recent record high. Shares of several chip and memory giants fell significantly. Sandisk ended the day down 14%, while AMD, ARM Holdings, Micron and Seagate plunged more than 8%. Dell Technologies, which is a leading producer of data center servers that use chips and memory made by those firms, tumbled 8.1%. Intel shares slid 5.8%.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in