Nasdaq Drops 1.4% as TSMC Earnings Fuel AI Investment Concerns
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US stocks fell on Thursday, with the Nasdaq composite sliding 1.4% as Taiwan Semiconductor Manufacturing Co.'s results failed to support artificial-intelligence stocks. The decline was exacerbated by rising geopolitical tensions in the Middle East, leading traders to reassess the sustainability of AI-related investments.
Chipmakers experienced a significant selloff, raising worries about whether the substantial investments in AI will justify their high valuations. Companies like Sandisk and SK Hynix also faced steep declines, contributing to the overall downturn in the market.
Sources
Every quote below is verbatim from the article it is attributed to.
“US stocks declined on Thursday as Taiwan Semiconductor Manufacturing Co.’s results failed to boost artificial-intelligence stocks and traders assessed a worsening situation in the Middle East.”
Bloomberg — Nasdaq 100 Slides 1.4% as TSMC Results Revive Concerns Around AI“A selloff in chipmakers dragged down stocks amid concerns over whether massive artificial-intelligence investments will justify lofty valuations, with a resurgence in geopolitical risks also weighing on sentiment.”
Bloomberg — Chip Stocks Hit by AI Spending Worries After Rally: Markets Wrap“The Nasdaq composite dropped Thursday as Sandisk and SK Hynix plunged. TSMC sold off on earnings.”
IBD — Stock Market Today: Nasdaq Slides While TSMC Hits Sell Rule; Abbott Soars (Live Coverage)“Stock market today: Dow rises, S&P 500 and Nasdaq fall as chip stocks slide amid AI jitters”
Yahoo Finance — Stock market today: Dow rises, S&P 500 and Nasdaq fall as chip stocks slide amid AI jitters
Earlier versions
- Jul 16, 10:31 AM — Chip Stocks Slide Amid AI Jitters as Oil Prices Rise (2/2)