Shares of Micron Technology and SanDisk led a steep decline in technology stocks on Tuesday, marking a significant stress test for the artificial intelligence trade that has powered market gains for months.
The selloff in semiconductor names signaled growing caution among investors who had previously bid up AI-related equities to record highs.
A key index of semiconductor manufacturers fell 7% in the session, representing a sharp reversal for a sector that had more than doubled its value since the lows triggered by geopolitical tensions earlier in the year.
The pressure on chipmakers extended broader weakness across US markets.
A key index of semiconductor manufacturers fell 7% in the session, representing a sharp reversal for a sector that had more than doubled its value since the lows triggered by geopolitical tensions earlier in the year.
The decline underscores a shift in sentiment as traders reassess valuations in the face of mounting macroeconomic uncertainty.
US equity futures pointed to a sharply lower open, with the Nasdaq 100 tumbling 2.8% and the S&P 500 declining 1.4%.