Semiconductor and AI-linked stocks fell sharply as investors pulled back across the sector.
According to Yahoo Finance, Intel dropped 7%, AMD slid 5% and Taiwan Semiconductor (TSMC) fell 6% after Bank of America flagged "bubble risk" in the space.
The weakness spread to memory-chip makers. Per 24/7 Wall St., Micron dropped 8%, SanDisk slumped 10% and Western Digital fell 7% as memory stocks pulled back alongside the NASDAQ.
The Times of India reported that Wall Street was broadly under pressure, with Nvidia, AMD and Micron leading an AI-stock sell-off.
The declines appear to reflect a rotation out of the sector rather than a single piece of bad news. A Yahoo Finance commentary described institutions "quietly" triggering a roughly 13% semiconductor rotation, even as retail investors closely watched Nvidia's price action. The author of that piece said they were still buying Nvidia, calling it their fifth addition in eight weeks and arguing the case had only strengthened despite the selloff.
Together, the sources point to a coordinated retreat spanning chip designers (Intel, AMD, Nvidia), a leading foundry (TSMC) and memory makers (Micron, SanDisk, Western Digital) — a broad pullback rather than a company-specific stumble.
Why it matters: chipmakers have been among the biggest beneficiaries of the AI boom, so a warning about "bubble risk" from a major bank and a sector-wide drop signal that investors are starting to question whether AI-driven valuations have run too far, too fast.