Chip stocks fell sharply on Thursday, with Intel and AMD down about 8%. MarketWatch points to Tesla's lower spending target, a weaker-than-expected forecast from Lam Research and a reminder that the AI boom relies on outside funding.
Tesla cut its spending forecast for the year, an unusual move and one factor that weighed on the chip sector on Thursday, according to MarketWatch.
Shares of Intel and Advanced Micro Devices fell about 8%. Micron Technology's stock was down 6.3% at the close, while Sandisk closed down 8.5%.
Nvidia shares were off 4.4% on the day.
MarketWatch says investors are spooked by Tesla's lower spending target, Lam Research's weaker-than-expected forecast and a fresh reminder that the AI boom relies on outside funding.
Source: MarketWatch (snippet-based)
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