Four weeks after U.S. stocks tumbled amid a global flight from risky assets, chipmakers sparked renewed stock selling Tuesday after two industry analysts raised concerns that the mania for artificial intelligence had gone too far.
Nvidia shares tumbled 9.5%, erasing the biggest loss ever for a $278.9 billion U.S. stock. It has now fallen 14% in the three sessions since reporting earnings that missed high expectations. All 30 members of the Philadelphia Semiconductor Index fell at least 5.4%, with On Semiconductor, KLA Corp. and Monolithic Power Systems down more than 9%. The Nasdaq 100 fell nearly 3.2%.
There were other reasons for the bleak start to what has historically been a volatile month for stocks. Concerns about China’s growth shook commodity markets from oil to copper. U.S. manufacturing data hit the headlines, showing a rise in prices paid, a potentially worrying sign for inflation hawks.
