Chip Stocks Wipe Out as Iran War Fears and Big Tech Earnings Loom – Yahoo Finance
This article first appeared on GuruFocus.
AI and chip stocks fell on Monday as investors awaited quarterly results from major technology firms and monitored U.S.-Iran war developments. Nvidia (NASDAQ:NVDA) edged higher while the broader sector faced selling pressure.
The Nasdaq Composite dipped about 0.25%, the S&P 500 slipped 0.12% and the Dow Jones Industrial Average fell 0.24%. Oil prices surged, with Brent crude up about 3% and U.S. crude nearly 3%, weighing on growth-sensitive tech shares.
Iran offered to lift its blockade on the Strait of Hormuz, a vital oil transit chokepoint, if the U.S. ends its own blockade and the war, the Associated Press reported. The shipping disruption has created inflationary pressures, raising cost concerns for data-center hardware suppliers tied to Nvidia’s ecosystem.
Advanced Micro Devices (AMD) fell nearly 4%, Marvell Technology (NASDAQ:MRVL) tumbled nearly 5%, ARM (NASDAQ:ARM) slumped about 9% and Applied Optoelectronics (NASDAQ:AAOI) plummeted about 10%. Nvidia shares rose about 1%, while Micron Technology (MU) jumped about 5% and Intel (NASDAQ:INTC) rose about 1%.
