Nasdaq-100 nears correction territory as semiconductor stocks slide again
The Nasdaq-100 is on the edge of correction territory as semiconductor stocks take another beating, just weeks after helping drive major indexes to record highs. The renewed slide has investors reassessing how much further AI-linked spending can support chip valuations. Several large chipmakers have led the index lower this week.
The Nasdaq-100 is edging toward correction territory as semiconductor stocks take another sharp hit, just weeks after helping push major indexes such as the S&P 500 to record highs. The renewed slide has wiped out much of the sector's recent gains in a matter of days.
Analysts say the sell-off largely reflects growing doubts about when massive spending on AI infrastructure will translate into profits. Shares of several large chipmakers led the index lower this week, dragging down broader technology gauges alongside them.
Investors are now watching upcoming earnings from major technology companies closely, as those results are expected to offer clues on whether AI-related spending can still justify current valuations. The outcome could set the tone for markets in the weeks ahead.
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