Nvidia, Intel, and AMD shares tumbled as investors shrugged off President Trump's dismissal of AI safety concerns, choosing instead to focus on industry-led calls for a development slowdown.
Intel dropped 7% amid broad semiconductor sell-off, despite having less AI exposure.
Nvidia shares fell 3% despite Trump's supportive call, as market priced in AI slowdown fears.
AMD lost 6% as chip stocks declined on AI slowdown concerns.
The iShares Semiconductor ETF slid 6% reflecting sector-wide pressure.
Semiconductor stocks faced a sharp sell-off on Monday, with the iShares Semiconductor ETF dropping 6% despite a surprise phone call from President Trump to Nvidia CEO Jensen Huang. Investors prioritized warnings from industry leaders like Anthropic's Dario Amodei regarding AI development pacing over political rhetoric, signaling a broader unwinding of crowded trades.
The market is currently prioritizing warnings from AI industry leaders regarding development pacing and potential safety risks over political rhetoric, leading to a broader correction in semiconductor valuations.