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Last updated: July 28, 2026, 5:30 PM ET

Tech and Chip Stocks Face Headwinds Amid AI Sell-Off

U.S. chip stocks continued their decline, with the Nasdaq 100 briefly entering correction territory as investors rotated out of artificial intelligence darlings in favor of other sectors. This sell-off deepened, rattling broader markets as tech stocks spiraled lower. Chip-equipment supplier ASM International, however, expecting revenue to exceed its previous 2027 target due to strong AI-fueled orders. Similarly, Teradyne reported soaring profits driven by demand for its semiconductor testing equipment amid the AI boom. Despite the broader tech downturn, Apple briefly, benefiting from its measured AI spending and its position as a safe haven.

Automakers and Industrials Raise Outlooks on Pricing and Demand