Chipmakers Slump 4.3%, Dragging Nasdaq 100 Down 1.6% as AI Doubts Deepen
Updated
Updated · Bloomberg · Jul 16
Chipmakers Slump 4.3%, Dragging Nasdaq 100 Down 1.6% as AI Doubts Deepen
3 articles · Updated · Bloomberg · Jul 16
Summary
A key chip-stock gauge dropped 4.3%, extending the tech-led selloff and pulling the Nasdaq 100 down 1.6% in a fresh bout of volatility.
TSMC's solid outlook failed to reassure investors after it raised spending plans, reinforcing worries that heavy AI investment may not justify stretched valuations.
Alphabet fell 4.4% after Google was reported to be months behind on its flagship AI model, adding to pressure across AI-linked shares.
Netflix slid in late trading after forecasting a second straight quarter of slowing sales growth, while renewed geopolitical risks further weighed on market sentiment.
The retreat followed an earlier semiconductor selloff that had already spread beyond chipmakers into broader AI infrastructure and electrical-component stocks.