Semiconductor Stocks Plunge as Tech Selloff Intensifies on Valuation and Macro Concerns

The sharp decline in semiconductor names capped a third straight down day for tech-heavy indices, driven by profit-taking after strong AI-fueled gains and sensitivity to rising bond yields that pressure high-valuation growth stocks.

Elevated oil prices added to inflationary worries, indirectly hitting cyclical tech demand expectations. Names tied to storage and components were particularly weak, amplifying losses in the Nasdaq.

The move highlights ongoing debate over AI infrastructure spending sustainability, with analysts noting that while hyperscaler capex remains robust, near-term multiples leave little room for disappointment. Global bond market turbulence exacerbated the rotation away from duration-sensitive sectors.

Energy and value areas outperformed as investors sought inflation hedges. Traders should track upcoming earnings from other chipmakers, any shifts in Nvidia commentary on demand, and technical levels such as support on the SOX index.

A stabilization in 10-year yields below recent peaks could provide relief, while further oil spikes risk extending the pullback. Position sizing in semis remains key given high beta to macro and sentiment shifts; watch for volume confirmation on any rebound to gauge conviction.