begin quotes:
A
historic market downturn erased over $1 trillion in capitalization
across major U.S.-traded chipmakers and tech stocks following weak
earnings and rising interest rate fears. The two-day selloff marked the
semiconductor sector's deepest drop since April 2025.
Key Market Details
- Total Loss: U.S. chipmakers suffered a combined loss of roughly $1.3 trillion over a two-session plunge, dragging the S&P 500 down.
- Nvidia: Shed about $300 billion in a single day, dropping around 6%.
- Micron: Plunged between 11% and 13%, evaporating around $127 billion in value.
- Broadcom: Triggered the initial drop after posting quarterly figures that indicated custom AI chip demand fell short of lofty expectations, dragging their two-day loss to almost 20%.
Industry Catalyst
The
semiconductor and broader AI stock pullbacks stem from growing investor
anxiety over the profitability of massive AI data center investments.
Markets reacted negatively to the squeezed free cash flows of
"hyperscalers"—the major tech platforms buying the chips—as the
infrastructure and power costs of the AI build-out skyrocketed.
You can read the complete Yahoo Finance Article or the detailed Reuters Coverage for an in-depth breakdown of the market correction.
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