Tech hardware stocks lag as AI return worries weigh
XLK•The S&P 1500 Tech Hardware & Equipment index fell 3.3% this week, compared with a 1.2% decline in the S&P 500, as concerns grew that debt-laden data center operators may take longer than expected to earn returns on AI investments.
1. Hardware stocks decline
Tech hardware firms were among the S&P 500’s worst performers this week. Lumentum and Ciena fell 2.5% and 3.2%, respectively, on Friday, after losing nearly a quarter of their value through Thursday’s close; Lumentum shares have still more than doubled this year.
2. Broader sector weakness
Applied Optoelectronics fell 3.3% and Fabrinet dropped 2.1%. Hewlett Packard Enterprise, Coherent, Flex and Super Micro Computer declined between 3.6% and 4.4%.
