Chipmaker Qualcomm's earnings disappointed investors, sending AI stocks into a tailspin as the market reassesses high-growth tech valuations. The semiconductor giant reported revenue below estimates, citing slowing demand for mobile processors and inventory corrections across the supply chain. Shares fell 7.2% in after-hours trading, dragging the Nasdaq Composite down by 1.4%.
Other AI-related names, including Nvidia and Advanced Micro Devices, also declined as traders rotated out of momentum trades. The broader S&P 500 slipped 0.8%, with energy and financial sectors providing modest support. Analysts warned that the earnings miss could signal a broader slowdown in AI-driven hardware spending.
Meanwhile, Treasury yields edged higher, reflecting expectations of prolonged tight monetary policy. Investors are now watching upcoming reports from Microsoft and Alphabet for further clues on enterprise AI adoption and cloud infrastructure demand.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing