Nasdaq-100 under pressure after chip sell-off

Semiconductor weakness weighs on Nasdaq-100 futures Nasdaq-100 (US100) futures remain under pressure today following reports about China’s progress in developing its own semiconductor manufacturing technology. The index opened higher, supported by news of a pause in military operations between the US and Iran, but sentiment deteriorated as the session progressed and prices moved into negative territory. The strongest pressure has been visible across the semiconductor sector, with ASML, Nvidia and other chip-related companies among the biggest decliners.

The weaker sentiment was triggered by reports that China is making progress in developing advanced DUV lithography machines, which could eventually challenge the current advantage of leading industry players and increase competition in the semiconductor market. At the same time, investors are taking profits in the artificial intelligence segment, with Nvidia also coming under pressure. The market is increasingly focused not only on the pace of AI adoption, but also on the scale of investment required to sustain the current growth trajectory.

Rising spending on data centres and AI infrastructure is raising questions over whether the size of these investments will translate into sufficiently strong returns in the future. Today’s session highlights growing market sensitivity to developments in the semiconductor sector. The industry remains one of the key pillars of the artificial intelligence narrative, meaning any information related to technological competition, margin pressure or future investment returns can quickly impact the valuations of major companies and the broader index.

Source: xStation5

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