Chip Stock Profit-Taking Pressure
Chip stock profit-taking after massive year-to-date gains is driving Nasdaq underperformance versus the Dow
Too little corroboration in the last 3 days to call a trend (13 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"Western Digital lost 9.6% and memory chip maker Sandisk dropped 3.5%, after having shot up 200% and 400% this year... 'There are just incredible expectations and chips have done so well this year through June so there's just some digestion going on in the market.'"
"The Nasdaq composite lost 0.8%... SpaceX sank after increasing its spending on artificial intelligence"
"The Nasdaq composite was down 0.1% after briefly dropping 9.3% below its record set last month. Stocks of computer chipmakers continue to tumble worldwide."
"The tech-heavy Nasdaq fell on Friday as investors sold chip stocks, concerned about massive AI spending plans ahead of upcoming megacap earnings reports. Investors are wary of the high capital outlays in the technology sector following Alphabet's announcement late Wednesday."
"Nasdaq-100 futures led the declines, dropping around 0.7%, as investors awaited quarterly results from Alphabet and Tesla, due after the closing bell. The cautious mood followed a positive session on Wall Street on Tuesday, with investors now turning their focus to Big Tech earnings, which are expected to offer fresh clues on the outlook for artificial intelligence spending and corporate profitability."
"The S&P 500 fell 0.5%... The Nasdaq composite lost 1.5%. Nvidia fell 2.4%, making it the heaviest weight on the index. Other stocks that have benefited from strong demand for AI also sank."
"The tech sector faced particular scrutiny after Taiwanese chip giant TSMC reported a staggering 77% earnings growth that failed to impress investors who are leaning heavily into AI-related technology stocks."
"The tech-centric Nasdaq has seen its overall direction increasingly dictated by chip stocks, explained Paul Nolte, a senior wealth advisor."
"Computer chipmakers and other winners of the artificial-intelligence boom are slumping again Thursday and weighing on stock markets worldwide. The Nasdaq composite was 0.7% lower."
"Gains in stocks are muted amid weakness in chipmakers and AI infrastructure stocks."