Investors shift focus to AI profitability as chipmakers rally while big tech stocks slump, weighing on major indices.
US stock futures edged lower following a volatile session where the Nasdaq declined 0.5% amid a sharp divergence in tech performance. Chipmakers surged, with Micron up 15% and Sandisk rising 22%, while big tech stocks retreated, led by Apple’s 6% drop and Microsoft’s 3.5% decline.
The S&P 500 closed nearly flat, and the Dow gained 0.1% as investors rotated out of high-flying tech names. Market sentiment soured despite strong gains in select semiconductor stocks, signaling skepticism over AI-driven earnings growth.
Traders now demand tangible returns on AI infrastructure investments, pressuring valuations after a week of mixed signals. The pullback highlights growing caution ahead of earnings season.