Chip Stocks Fall Amid Tech Sector Selloff

Semiconductors Suffer as Investors Grow Wary

As the trading week drew to a close, investors were feeling rather less sanguine about the semiconductor sector. Semiconductors have been among the hottest stocks in recent months, thanks to the hype surrounding artificial intelligence applications such as generative AI. However, the sector took a hit on Thursday, with chip stocks among the biggest losers in the technology sector selloff. NVIDIA, a leading chipmaker, saw its shares tumble by over 4%, while AMD stock has been on a downward spiral in recent weeks.

AMD Earnings Could Provide a Catalyst

AMD's stock has been in freefall, but its upcoming earnings report could provide a spark for the chip sector. The company is expected to report strong revenue growth, driven by demand for its data center and gaming chips. Analysts will be watching closely to see if AMD can deliver another strong quarter and whether its earnings can help to buoy the overall semiconductor sector.