Nasdaq Falls Over 1% As Chip Stocks Tumble; ON Plunges 18%, Micron Drops Over 5%

Tiger Newspress06-26 21:31

Stocks moved lower on Friday as OpenAI is reportedly considering delaying its IPO and as a sell-off in tech gathered pace amid mounting concerns over the rising cost of artificial intelligence infrastructure.

The S&P 500 was down 0.6%, while the Nasdaq Composite lost 1.06%. The Dow Jones Industrial Average fell 193 points, or 0.37%.

Chip stocks were weaker after a New York Times report that OpenAI is considering delaying its IPO to next year because of SpaceX’s poor performance following its debut and overall volatility in AI-related shares.

The report raised concerns about “sustainability of their infrastructure spending given the delay in funding from the capital markets,” wrote JPMorgan traders in a note.

The OpenAI IPO delay “could slow the pace of infrastructure spending,” said Adam Crisafulli of Vital Knowledge.

Shares of Micron Technology declined 5%, while ON Semiconductor Plunges 18%. Additionally, software stock c dropped more than 1%.

Microsoft rose more than 1% after Michael Burry reportedly placed a long-term call bet on the stock, viewing $350 as a buying opportunity.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment