Semiconductor stocks face a sharp correction as market sentiment shifts against high-multiple AI names ahead of the FOMC meeting.
Marvell falls 7% as AI pacing debate and Fed rate hike expectations hit high-multiple chip stocks, reversing part of its 159% YTD gain.
Broadcom drops 4% amid AI infrastructure spending concerns and a broader chip sector selloff, extending a 17% monthly decline.
NVIDIA pulls back 3%, less severely than peers, as market discriminates by cash-flow duration rather than selling AI names indiscriminately.
Semiconductor ETF SOXX falls 5%, confirming chip-sector-specific weakness versus broader tech.
QQQ declines only 0.3%, highlighting that the selloff is concentrated in semiconductors rather than broad tech.
Marvell Technology shares fell 7% on Monday as investors reassessed AI infrastructure spending and braced for an expected Federal Reserve rate hike. The selloff hit high-multiple semiconductor stocks hardest, with the SOXX ETF dropping 5% while broader tech indices remained relatively stable.
The selloff is driven by a combination of rising interest rates, which disproportionately affect high-multiple growth stocks, and concerns regarding the sustainability of AI infrastructure spending.