US semiconductor shares tumbled on Wednesday as hotter-than-expected inflation and mounting worries over massive AI infrastructure borrowing rattled investors. The Philadelphia Semiconductor Index dropped 4.3%, extending a 12% decline since last Tuesday. Nvidia and Meta each fell about 3.2%, while Oracle slid 8.8% and Marvell lost 8.7%.
September US inflation came in at 3.7%, driven higher by fuel prices from the Iran conflict, pushing the 10‑year Treasury yield briefly to 5.33% before closing at 5.2%. Higher rates pressure valuations of fast‑growing tech firms. Analysts warn that capital markets may struggle to absorb the flood of debt financing data‑center and chip purchases. CoreWeave CEO Mike Intrator called the sell‑off “irrational,” citing a pulled IPO of rival neocloud Firmus and distressed bond yields hitting 15%.
Broadcom CEO Hock Tan cautioned some investors “have no clue what they are investing in,” likening the market to a “casino.” Asian memory giants Samsung Electronics and SK Hynix fell 7.4% and 10.1% respectively. Despite the slide, S&P 500 earnings are still forecast to jump 27% in Q3, though Micron and Nvidia alone may account for a third of that gain.
Source: Financial Times Companies · Summarized by HeadlinesBriefing