This isn't a broad-market decline; it's a decline in the AI chip sector.
Last week, the Nasdaq fell 3.4%, Sandisk dropped 27.4%, Micron fell 22%, and the VanEck Semiconductor ETF dropped 11.2%. Over the same week, oil prices fell 12.8%, and the 10-year Treasury yield dropped to a two-month low of 4.86%. The 3.4% decline at the index level is just the surface; the 11.2% drop in the semiconductor ETF is what the market is really pricing in. Sandisk and Micron fell by twice as much as the ETF, with selling pressure concentrated in storage and chips rather than spread evenly across the board.
Nvidia's board is investigating this.
If the Nasdaq continues to fall next week while the semiconductor sector's losses narrow to less than the Nasdaq's, this assessment is invalidated.
#AIChipStocksPlungeNasdaqFalls3.4%ForTheWeek
Last week, the Nasdaq fell 3.4%, Sandisk dropped 27.4%, Micron fell 22%, and the VanEck Semiconductor ETF dropped 11.2%. Over the same week, oil prices fell 12.8%, and the 10-year Treasury yield dropped to a two-month low of 4.86%. The 3.4% decline at the index level is just the surface; the 11.2% drop in the semiconductor ETF is what the market is really pricing in. Sandisk and Micron fell by twice as much as the ETF, with selling pressure concentrated in storage and chips rather than spread evenly across the board.
Nvidia's board is investigating this.
If the Nasdaq continues to fall next week while the semiconductor sector's losses narrow to less than the Nasdaq's, this assessment is invalidated.
#AIChipStocksPlungeNasdaqFalls3.4%ForTheWeek
