NVDA, AMD, and META slide 2%-5% as 30-year Treasury yields surge, pressuring high-growth tech valuations and AI infrastructure financing costs.
NVIDIA, AMD, Broadcom, and Meta shares fell 2% to 5% Tuesday as the 30-year Treasury yield reached its highest level since 2007. The Invesco QQQ Trust and VanEck Semiconductor ETF declined 1.4% and 4.3%, respectively, while the equal-weight S&P 500 rose 0.2%, signaling a tech-focused selloff.
Higher yields reduce the present value of future earnings, disproportionately impacting tech stocks reliant on long-term growth. Rising borrowing costs also threaten AI infrastructure investments, where payback periods remain uncertain. The yield increase predates Tuesday’s move, driven by heavy government borrowing and corporate capital expenditures.
Renewed U.S.-Iran tensions added upward pressure on yields by sustaining oil prices and inflation concerns, though strategists argue the broader rise reflects a global increase in the real cost of capital.