US chip stocks plunge as Nasdaq falls 6 per cent
Semiconductor companies including AMD and Qualcomm saw significant declines following concerns over potential new regulations on artificial intelligence infrastructure.
Chip stocks faced renewed selling pressure during Thursday's trade, extending a sell-off that saw the Nasdaq 100 decline by as much as 6.4 per cent, according to Mint.
The declines occurred as investors weighed the possibility that a Democrat-led Congress might implement stricter rules regarding data centre development and artificial intelligence (AI) infrastructure.
Major semiconductor companies saw steep drops, with AMD plunging 17 per cent and Intel declining 10 per cent. Nvidia shares fell 9 per cent, marking their largest drop since April 2025.
Qualcomm shares fell 14 per cent following a disappointing profit forecast, while Arm Holdings dropped 15 per cent after its revenue guidance failed to impress Wall Street.
Micron Technology shares fell 13 per cent after the company paused plans for a Taiwanese plant due to labour disputes. Sandisk shares lost another 15 per cent at their intraday low.
Other market movements included the S&P 500 falling 4 per cent and the Dow Jones Industrial Average declining 3 per cent. Tesla and SpaceX shares fell 9 per cent and 11 per cent respectively.
