The Nasdaq Composite fell 2.2% and the S&P 500 dropped 1.4% on June 23, triggered by a broad retreat from chip stocks amid escalating concerns over the return on massive AI infrastructure investment.
Nvidia slid more than 4%, while Intel, AMD, and Marvell Technology each lost over 5.8%. The selloff followed Broadcom’s earlier Q3 AI revenue miss, which had already vaporized $1.3 trillion in semiconductor market value in a single session.
Hyperscalers like Microsoft, Google, and Amazon have been taking on significant debt to fund AI data centers, but revenue growth may not justify the spending spree. Asian memory chip makers Samsung and SK Hynix fell as much as 12%, amplifying the downturn.
The Philadelphia Semiconductor Index had surged earlier in 2026 on AI enthusiasm, but Monday’s decline signals a reassessment of ROI math. Anticipation of a more hawkish Federal Reserve adds to the pressure, as higher rates would increase the cost of servicing AI-related debt.
Analysts describe the volatility as a possible market recalibration, not a fundamental reversal. The coming earnings season will be critical: if Nvidia and AMD can show resilient demand, the selloff may be a correction; otherwise, deeper repricing could follow.