A $2.5 trillion loss in Nasdaq market value marked the largest decline in the index’s history as technology shares tumbled after results from Qualcomm and Arm Holdings disappointed investors. The selloff spread across semiconductor stocks, with the sector’s benchmark suffering its steepest drop since the depths of the pandemic.
Qualcomm shares fell despite the chipmaker’s forecast for torrid growth in data-center demand. The company said higher memory-component prices weighed on its handset unit. Arm Holdings slid after its earnings-growth forecast fell short of what some analysts had expected. Nvidia, a leading beneficiary of the artificial-intelligence boom, recorded one of its largest losses in recent years.
The Philadelphia Stock Exchange Semiconductor Sector Index, known as the PHLX “SOX,” dropped more than 10%. Memory-chip makers Micron and Sandisk, which had become favorites among day traders during the AI boom, went into freefall. Chip-equipment maker Lam Research posted its biggest decline since 2020.
“The narrative has shifted from ‘AI changes everything’ to the ‘Blue wave means datacenters will never be built again in this country,” said Chris Zaccarelli, chief investment officer at money manager Northlight Asset Management.
In other technology-industry developments, the Federal Trade Commission and 22 states updated their complaint against Amazon, alleging the company deceptively inflated prices in its online search advertising auction. Separately, Amazon and Uber formed a restaurant-delivery partnership as competition across the delivery industry grows.
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