US chip stocks slide as Democratic sweep clouds AI expansion prospects
SOXX•US chip-linked stocks fell premarket after a Democratic sweep in midterm elections stoked fears of stricter data center regulations and limits on AI infrastructure expansion. The iShares Semiconductor ETF fell 3.9%, while Qualcomm slid 9.5% after its fourth-quarter chip sales missed.
1. Chip stocks decline
Advanced Micro Devices fell 3.2%, Nvidia was down 0.7%, and Marvell, Applied Materials and Intel dropped between 2% and 3.7%. Micron fell 3.1%, while Western Digital and Sandisk each slid about 4%; Arm lost 4.6% despite beating third-quarter earnings expectations. The Philadelphia SE Semiconductor Index touched its lowest level since late April on Wednesday, but remained up nearly 45% year to date.
