Semiconductor stocks have erased $1.64 trillion in market value over six sessions as selling pressure on Nvidia, AMD, Micron and other chipmakers intensified on Thursday, extending a rout that is shaking broader risk appetite.
Intel shares fell 3.84% and Advanced Micro Devices dropped about 3.77% during Thursday's session. AMD has finished higher in only one of the past seven sessions, while Intel has lost close to 20% in October. The Philadelphia Semiconductor Index declined for a seventh consecutive session, underscoring the breadth of the sell-off. Even Taiwan Semiconductor Manufacturing Co. failed to escape the downturn despite reporting record quarterly results, suggesting that strong earnings have done little to ease broader sector concerns.
Investors are reassessing the outlook for the artificial intelligence industry, with rising financing costs, doubts about returns on AI investment and new competitive questions adding pressure. A sharp decline in CoreWeave's corporate bond prices has added to unease about financial risks tied to AI infrastructure spending. The chip-heavy Korean stock market also tumbled, adding to global tech jitters.
The pressure comes against a challenging macro backdrop: US wholesale inflation in September rose to its highest level since 2022, raising concerns that price pressures could keep interest rates elevated. The Dow Jones Industrial Average gained more than 1% and the S&P 500 rose 0.12%, while the Nasdaq Composite slipped 0.3%. Treasury yields remained relatively calm, but investors continued to weigh the possibility of further Federal Reserve tightening. UBS earlier projected a third rate increase in March 2027, extending its forecast for the Fed's tightening cycle.
TSMC also reopened questions around Intel's role in Elon Musk's Terafab semiconductor manufacturing project. TSMC CEO CC Wei said the company remains in discussions about the project, but stressed that the fab has got to be run by TSMC. That contrasts with Musk's earlier comments indicating TSMC was not being considered for an operational role, leaving uncertainty over Intel's potential involvement.
For digital assets, the semiconductor sell-off and inflation-driven rate concerns could dampen risk sentiment broadly, even though the news is not crypto-specific. Risk assets, including cryptocurrencies, may face spillover pressure if the equity rout deepens or if Fed tightening expectations accelerate.
