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Chip Stocks Plunge Amid AI Spending Doubts
18 Jul
Summary
- Nasdaq-100 futures experienced a significant decline.
- Major chip companies like Sandisk and Applied Materials saw sharp drops.
- Netflix shares fell sharply due to slowing revenue and profit growth expectations.
The stock market is witnessing an accelerated selloff in chip stocks, with Nasdaq-100 futures indicating a 2% drop this morning. This follows a difficult trading session in Asia, where Taiwan and Japan's benchmark indexes fell by 6.5% and 4% respectively. Several prominent chip companies, including Sandisk, Applied Materials, and Corning, are experiencing substantial declines in premarket trading.
Netflix shares have also been heavily impacted, sliding over 9%. The streaming giant announced that it anticipates a slowdown in revenue and profit growth for the third quarter. These significant market movements are occurring as investor confidence wanes regarding the sustainability of valuations for chip manufacturers, given the immense capital being invested in the buildout of artificial intelligence infrastructure.
