"Chip names bore the brunt of the selling, with Micron -7%, Nvidia -4%, Intel -6% and Broadcom -3%. AMD fell 3.7% and extended its decline by another 5% despite beating estimates on revenues and earnings and raising its Q4 sales guide. Momentum tech suffered enormously with quantum stocks - adjacent to AI and bid up on speculative momentum - down about 10% yesterday. Palantir tumbled 8% and was down a further 3% in after-hours trading."
"We have seen a shift in the narrative in the last couple of days that is evidenced by notable selling in tech names, particularly AI. An 8% decline for Palantir - the bubbliest of all AI bubble stocks - after thumpingly good earnings suggests investors are calling the top. Long-term I think Palantir is an amazing company, but it was just too rich."
AI and AI-adjacent chip stocks led a sharp global equities selloff, with major Asian indices tumbling and U.S. markets retreating. SoftBank plunged 13%; the S&P 500 fell about 1.1% and the Nasdaq over 2%. Chip names such as Micron, Nvidia, Intel and Broadcom dropped materially, and AMD extended declines despite beating revenue and earnings estimates and raising guidance. Momentum and quantum-linked tech stocks plunged, with Palantir down roughly 8% after strong earnings. Market sentiment shifted rapidly as investors signaled a pivot. Bank CEOs warned of 10–20% corrections over 12–24 months. Heavy, crowded AI positioning and circular corporate AI investments are straining market appetite.
Read at London Business News | Londonlovesbusiness.com
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