Chip Stock Pullback Nasdaq Risk

"Tuesday's drop in the Nasdaq 100 came as losses in semiconductor stocks deepened as signs of progress in China's advanced chipmaking industry compounded worries about the sustainability of the artificial intelligence spending boom."

"U.S. stock index futures saw a decline, impacted by faltering chip stocks, as investors showed caution ahead of the impending Big Tech earnings reports. The sustained gains that propelled major indexes from their March lows have shown signs of weakening due to volatility within key semiconductor shares."

"Investors have grown increasingly concerned that the AI-driven rally may be losing momentum following weeks of weakness in semiconductor and technology stocks. Technology shares led Wall Street lower on Thursday, with the Nasdaq falling 1.47% as weakness in chipmakers and speculative growth stocks outweighed gains in defensive sectors."

"The weakness in chips, even after chip demand bellwether TSMC posted a 77 per cent jump in quarterly profit, demonstrated the lofty expectations for a sector that has soared by nearly 70 per cent so far this year."

"Gains in the broader market are limited today amid weakness in chipmakers. Chipmakers and AI-infrastructure stocks are under pressure today, a negative factor for the broader market. The iShares Semiconductor ETF (SOXX) is down -0.28%."

"Chip and AI infrastructure stocks slipped in pre-market trading as investors turned cautious ahead of SK Hynix’s debut on Wall Street."

"However, continued weakness in chipmaker stocks weighed on the Nasdaq, while the S&P 500 ended largely unchanged."

"Shares slumped Thursday in Japan and South Korea in the latest spate of heavy selling of computer chip stocks, while U.S. futures edged lower after modest losses on Wall Street. On Wednesday, chip stocks in the U.S. mostly fell."

"The technology sector faced challenges as chip stocks retreated after a recent surge, raising concerns about the sustainability of the tech-led rally."