The Nasdaq 100 slipped into correction territory as a broad technology selloff gathered pace, led by sharp declines in chip stocks. The move marked another setback for a market that has been heavily driven by enthusiasm around artificial intelligence and semiconductor demand.
Chip shares around the world were hit hard on Tuesday, extending a period of volatility that has unsettled investors for months. The latest drop added to concerns that some of the market's biggest winners may be vulnerable when sentiment shifts around AI, memory and related hardware names.
The weakness in semiconductor stocks weighed heavily on the wider tech sector, helping pull the Nasdaq 100 lower. Because chipmakers sit at the center of AI infrastructure and broader electronics demand, declines in that group often ripple quickly across major growth indexes.
The selloff highlights how fragile confidence remains in parts of the technology market despite strong interest in AI themes. For now, renewed pressure on chip and memory stocks appears to be driving a wider reassessment of tech valuations and near-term momentum.
