Chip Stocks Sink 4.3% as AI Spending Fears Drag Nasdaq 100 Down 1.6%
Updated
Updated · Bloomberg · Jul 21
Chip Stocks Sink 4.3% as AI Spending Fears Drag Nasdaq 100 Down 1.6%
3 articles · Updated · Bloomberg · Jul 21
Summary
A key gauge of chip giants dropped 4.3%, leading a broader US stock selloff as investors questioned whether huge AI outlays can support elevated valuations.
TSMC's solid outlook failed to reassure markets because its higher spending forecast reinforced worries that hyperscalers and suppliers will keep pouring money into AI.
The Nasdaq 100 fell 1.6%, while Alphabet lost 4.4% after Google was reported to be months behind on its flagship AI model.
Netflix also slipped in late trading after forecasting a second straight quarter of slowing sales growth, adding to pressure on growth stocks.
Resurgent geopolitical risks compounded the AI-spending anxiety, extending volatility across technology shares.