Nasdaq 100 Falls 1.6% as Chip Stocks Slide 4.3% on AI Spending Fears
Updated
Updated · Bloomberg · Jul 21
Nasdaq 100 Falls 1.6% as Chip Stocks Slide 4.3% on AI Spending Fears
3 articles · Updated · Bloomberg · Jul 21
Summary
A 4.3% drop in a key chip-stock gauge led a broader US equity selloff, pulling the Nasdaq 100 down 1.6% as investors questioned whether huge AI outlays can support stretched valuations.
Taiwan Semiconductor’s solid outlook failed to steady sentiment because its higher spending forecast reinforced worries that AI infrastructure costs are still climbing.
Alphabet fell 4.4% after Google was reported to be months behind on its most powerful flagship AI model, adding company-specific pressure to the tech retreat.
Geopolitical risks also darkened risk appetite, and after the close Netflix shares slid after forecasting a second straight quarter of slowing sales growth.