Tech-stock rout accelerates retreat from the AI trade
SMH•U.S. technology shares fell sharply, with the semiconductor index down as much as 11% and the Nasdaq composite down as much as 5%. More than a dozen large technology stocks, including AMD, Sandisk, Micron, Dell and Marvell, fell by double-digit percentages.
1. Technology shares slide
The semiconductor index fell as much as 11%, its steepest decline since March 2020, while the Nasdaq composite dropped as much as 5%, which would confirm a correction from its high last month. AMD, Sandisk, Micron, Dell and Marvell Technology were among more than a dozen large technology stocks down by double-digit percentages.
2. AI investment concerns
The selloff followed a series of declines in AI-related stocks since the Nasdaq's record close on October 6. Market participants cited reduced financing access for data-center construction and election results that included ballot measures expected to limit building in coming months and years. Several investors said concerns over the pace of AI infrastructure spending, alongside earnings and selling by institutional investors, weighed on technology shares.
