US semiconductor shares retreated sharply from record highs, marking a distinct reversal for the AI infrastructure trade that has driven market gains over the past year.
The Nasdaq Composite index fell 2.2% in the session, reflecting broad-based selling pressure across technology names linked to the artificial intelligence buildout.
The move follows a severe repricing in the semiconductor sector earlier in the week, where a key index of chip manufacturers plunged 7%.
The decline underscores growing investor caution after a prolonged period of strong performance.
While the initial sell-off was steep, buying interest from bargain-hunters emerged to limit the scale of the falls, preventing a more severe market breakdown.
This dynamic suggests that while momentum has shifted, underlying demand for exposure to the sector remains intact among value-oriented investors.
The move follows a severe repricing in the semiconductor sector earlier in the week, where a key index of chip manufacturers plunged 7%.