S&P, Nasdaq end lower on semiconductor selloff as AI spending concerns mount - Yahoo Finance

On June 23, 2026, U.S. stock markets declined due to a sharp selloff in semiconductor stocks, driven by growing concerns over AI spending. The S&P 500 and Nasdaq Composite posted their worst levels in... Read original →

The semiconductor selloff reflects growing skepticism about debt-fueled AI capex sustainability. Technologically, sub-3nm nodes intensify reliance on scarce EUV tools, bottlenecking TSMC, Samsung, and Intel, while memory players like Micron slash HBM-related investments, hurting upstream suppliers. Regulatory risks are mounting: a hawkish Fed under Warsh and potential U.S. sanctions linked to Middle East tensions will inflate compliance and supply chain redundancy costs. Strategically, NVIDIA may deepen software lock-in, AMD could leverage MI400’s cost-performance edge, and Marvell might benefit from custom AI ASIC demand. Over the next 12–24 months, the sector faces a ‘deflationary correction’—only chips with genuine utilization efficiency will survive, forcing a shift from brute-force compute toward purpose-built architectures as speculative AI infrastructure projects collapse under financial scrutiny.