US stock market crash: Chip stocks extend sell-off, AMD, Arm, Qualcomm and Sandisk plunge up to 17%; Nasdaq down 6%
A Ksheerasagar
Chip stocks came under renewed selling pressure in Thursday's trade, extending previous day sell-off, with AMD, Arm Holdings, Qualcomm, Micron Technology and Sandisk leading the declines.
The stocks fell between 9% and 17% amid concerns that a Democrat-led Congress could push for tighter restrictions on artificial intelligence (AI) infrastructure and data centre development. Disappointing reactions to earnings and business outlooks from Arm Holdings and Qualcomm added to the selling pressure.
Qualcomm shares plunged 14% after investors were disappointed with the company's profit forecast, while Arm Holdings (ARM) dropped 15% after the chip designer's revenue guidance failed to impress Wall Street.
Micron Technology was another major laggard, falling 13% after the memory chipmaker paused plans for a Taiwanese plant amid labour disputes. Following a 7% decline in the previous session, Sandisk shares lost another 15% at their intraday low.
SK Hynix's ADRs also fell 14% after shares of the South Korean memory maker tumbled in overseas trading, alongside Samsung Electronics. Nvidia shares extended their decline to 9%, marking their biggest drop since April 2025.
Similarly, Intel shares declined 10%, while AMD plunged 17%. The AI-led rally has powered Wall Street to multiple record highs this year, even as concerns over inflation, economic policies and the possibility of higher interest rates have weighed on the broader market.
Meanwhile, Elon Musk-led Tesla and SpaceX shares extended their declines, falling 9% and 11%, respectively, amid reports that the billionaire had spent at least $445 million to help Republicans retain control of Congress.
The steep sell-off also weighed on the broader market, with the S&P 500 falling 4% and the Nasdaq 100 declining as much as 6.4%. The PHLX Semiconductor Index, which tracks US-listed semiconductor stocks, dropped 11%, extending its losses from Wednesday. The Dow Jones Industrial Average also declined 3%.
The artificial intelligence industry has remained volatile for months amid growing criticism that valuations have climbed too high and that the sector could be heading towards a bubble.
Investors are also questioning whether the hundreds of billions of dollars that major technology companies are pouring into AI data centres will generate sufficient productivity gains and profits to justify the massive investments.
Democrats secured major electoral gains in the midterm elections, including victories in key gubernatorial races. The results could accelerate the backlash against power-hungry, water-intensive and noisy data centres that are central to the AI boom but have become increasingly unpopular among local communities.
US President Donald Trump acknowledged that the Iran war had affected the midterm results, suggesting voters were frustrated by surging gasoline prices resulting from the more than eight-month-old conflict.
Trump has been a strong supporter of the AI industry, and greater Democratic influence in Congress could pave the way for tighter regulation or restrictions on the sector. However, concerns about AI infrastructure and its impact on local communities have been growing across political parties.
State-level policy changes could have a more immediate impact on the industry. Democrats won gubernatorial races in Ohio, Georgia and Texas, three states with significant planned data centre investments. These electoral gains could increase regulatory scrutiny of new data centre projects and create additional hurdles for companies looking to expand their AI infrastructure.
A Ksheerasagar
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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HomeMarketsStock MarketsUS stock market crash: Chip stocks extend sell-off, AMD, Arm, Qualcomm and Sandisk plunge up to 17%; Nasdaq down 6%
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