Qualcomm drops as chip stocks pull back from record AI-driven rally
Qualcomm is one of the largest semiconductor companies producing chipsets.
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Chip stocks fell on Tuesday, pulling back from a massive rally that has pushed the AI trade beyond. Nvidia took the industry to new heights.
Qualcomm It fell 13%, heading for its worst session since 2020. Intel fell 8 percent About Semiconductor And Skyworks Solutions each fell more than 6%. iShares Semiconductor ETF The tracking sector lost 5% of its value.
Tuesday’s declines came after the core measure of consumer inflation read warmer than expected as the war in Iran sent oil prices higher, sending investors into risk-averse mode.
The latest rally has pushed AI trading beyond chipmaker powerhouse Nvidia, which has almost single-handedly driven its stocks to new highs for years.
Rapidly increasing demand for central processing units and their graphics processing units supporting large language models has pushed chip stocks to records.
Investors believe the shift from AI training to agents will increase demand for other AI components. This includes memory chip makers, who are increasing prices due to ongoing supply shortages.
Micron Technology fell 6 percent sandisk fell 8 percent. Sandisk shares have increased more than sixfold since the beginning of the year.
