AI sell-off Triggers Sharp Drop in Chip Stocks, Nasdaq 100 Slides

The market’s latest AI sell-off has sent semiconductor equities spiraling, with the Nasdaq 100 slipping into correction territory as investors brace for a wave of Big Tech earnings.

AI sell-off Fuels Chip Stock Decline

Shares of industry bellwethers such as Nvidia and AMD fell ↓ 4.5% on Tuesday, while broader chip ETFs posted a ↓ 3.2% slide.

“The pace of the sell‑off exceeds typical post‑earnings volatility,” said a senior analyst at Reuters.

The S&P 500’s technology segment logged a ‑1.1% decline, widening the gap with the broader index. Investors are closely watching earnings guidance from Apple, Microsoft and Alphabet, with insights from Bloomberg suggesting tighter margins could exacerbate the downturn.