US Stocks Today: US Stocks Open Lower as Chip Rout Extends
Investors questioned whether more than $725 billion in AI spending can support lofty chip valuations as TSMC raised its spending forecast.
- On Thursday, Taiwan Semiconductor Manufacturing Co. shares dropped 5% as investors reacted to a higher spending forecast that overshadowed the chipmaker's solid earnings outlook.
- Skepticism regarding whether massive artificial-intelligence investments will justify lofty valuations has pressured technology stocks, as the four biggest US AI operators are expected to spend more than $725 billion this year alone.
- A gauge of chip giants fell 4% as market analyst Matt Maley at Miller Tabak noted that negative responses to strong numbers raise concerns about the "all-important leadership group."
- Heightened geopolitical threats and US strikes against Iran weighed on sentiment, while Brent oil hovered near $85, potentially pressuring the Federal Reserve to maintain higher interest rates.
- Ellen Zentner at Morgan Stanley Wealth Management said consumers remain resilient, though investors are closely watching corporate earnings for evidence that spending translates into returns.
16 Articles
16 Articles
AMD Falls 5%, Intel Drops 4%, NVIDIA Slides 3% Before Recovering as Rotation Hits Semiconductor Stocks
A wave of selling swept through semiconductor stocks Friday as investors began questioning whether the AI spending boom can justify chip valuations built on optimism alone. The forces driving this rotation reveal cracks in the narrative that sent some semis up triple digits this year.
The Economic Times
Times of IndiaUS stocks today: US stocks open lower as chip rout extends
Wall Street opened lower as investors reassessed the strength of the AI-driven rally, triggering a fresh selloff in chip stocks. Nvidia and Intel declined, while Netflix dropped after a weak forecast. The Nasdaq led losses, reflecting pressure on tech stocks amid rising uncertainty and cautious market sentiment.
Semiconductor leaders optimistic about earnings, global semiconductor stocks fall; confidence from Chey Tae-won and others, investor anxiety. Investor anxiety is growing as the stock prices of global semiconductor companies plummet. Amidst emerging market concerns that the semiconductor sector has peaked, domestic and international leaders driving the memory and AI semiconductor markets are facing short-term fluctuations.
Stocks Slide as Chip Selloff Deepens, Oil Climbs: Markets Wrap
(Bloomberg) — Asian stocks fell alongside US equity-index futures as investors rotated out of technology shares, deepening a selloff in chipmakers after the sector’s blistering rally earlier this year. Oil climbed.
Coverage Details
Bias Distribution
- 42% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
