A sharp sell-off in chipmakers dragged stock markets lower around the world, as investors pulled back from the artificial-intelligence trade that had powered much of this year's gains. According to Bloomberg, Nasdaq futures tumbled 1.5% as the chip rout deepened, and NDTV Profit reported the Nasdaq falling about 2% while the S&P 500 sank.
The damage spread across the semiconductor sector. According to 24/7 Wall St., AMD fell 5%, Intel dropped 4%, and Nvidia slid 3% before recovering, as a rotation hit chip stocks. TradingView and Stocktwits reported that Taiwan's TSMC touched a two-month low despite a wave of analyst price-target hikes, while Crypto Briefing noted that SK Hynix's U.S.-listed shares dropped below their $149 listing price for the first time as what it called "AI chip euphoria" faded. Moneycontrol reported the jitters were felt from Seoul to Europe.
At the same time, oil prices climbed. Investopedia and MSN reported that crude gained after fighting between the U.S. and Iran escalated, with the U.S. striking Iranian infrastructure and supply routes. Economic Times noted Netflix also slid, adding pressure at the open.
Not everyone is bearish. Seeking Alpha reported that Intel was upgraded to a "Buy" after roughly a 30% selloff, citing optimism ahead of its Q2 earnings, and CNBC's Investing Club said it remains bullish on one chip stock despite a 30% pullback this month. The Motley Fool pointed to stocks worth buying in the dip. Meanwhile, according to AOL, Nvidia's CEO doubled down on his verdict on AI and the stock market, and Yahoo Finance reported that Palantir CEO Alex Karp grouped his company with Nvidia, Micron, and SK Hynix as the biggest winners from AI infrastructure spending.
Why it matters: because AI-linked chipmakers have become the market's biggest engine, a wobble in that single trade can pull down the value of retirement accounts and portfolios far beyond the tech sector.