Nvidia (NVDA), AMD (AMD), Qualcomm (QCOM) and other chip stocks lost ground in intraday trading Tuesday, dragging the tech sector and major indexes down with them.
The losses came ahead of earnings from some of the chip companies’ largest big tech customers, amid concerns about their spending on artificial intelligence (AI) infrastructure, and ahead of key decisions on interest rates from the Federal Reserve that could favor small-cap stocks.
The S&P 500 and Nasdaq Composite were both down sharply in late trading Tuesday, with Nvidia and other chip stocks among the biggest decliners.
With Microsoft (MSFT) set to report earnings after the bell Tuesday, Meta (META) following on Wednesday, and Apple (AAPL) reporting Thursday, investors could get key updates on how big tech leaders are approaching AI investments, amid concerns about their costs.
Whether they signal a pullback to appease investors’ worries about AI’s …