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Chip stocks pared losses Thursday after concerns over debt-heavy balance sheets triggered a broader AI-driven sell-off on Wall Street.
The overall Tech (XLK) sector trimmed declines as investors flocked to Treasurys, pushing long-dated yields substantially lower.
Shares of Nvidia (NVDA) and peer Advanced Micro Devices (AMD) fell nearly 2% and 4%, respectively, extending a global chip stock sell-off, as seen on AlphaSpace’s heatmap below.
Chip flash memory maker Sandisk (SNDK), which has been the S&P 500’s (GSPC) top performer in 2026, pared losses during the session but remained down nearly 3%, extending a 5% drop on Wednesday.
Memory highflier Micron (MU) recovered from a drop of more than 4%, while SK Hynix (SKHY) fell 2%. Both stocks were hit earlier this week over worries about Chinese competition.
Positive earnings and record profit from chip contractor TSMC (TSM) did little to lift sentiment. Shares of the world’s largest contract chip manufacturer pared losses, dropping 2%.
Worries over the cost of capital for companies with heavy debt on their balance sheets have collided with hotter-than-expected inflation data, sparking fresh concerns over how rising prices may affect the Federal Reserve’s next move.
September’s wholesale inflation rose at its highest pace since 2022, further deepening worries of higher lending costs ahead.
Meanwhile, a spike in bond yields for Nvidia-backed CoreWeave (CRWV) has raised concerns about the neocloud’s debt-heavy balance sheets and rising interest rates amid sticky inflation.
CoreWeave shares recovered from a 7% drop on Thursday after falling more than 15% in the prior session.
Ines Ferre is a senior business reporter for Yahoo Finance.
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