The Nasdaq fell 2.77% on July 17, its worst drop since December 2022, with ASML down 12.74%, NVDA down 6.62%, and META down 5.68%; TSMC on the NYSE fell 7.98%
quoted on @Investingcom — saying that Intel is the “only alternative” to TSMC and that they see 100% upside potential. https://www.investing.com/... Travis Hoium / @travishoium : $ASML may be an incredibly important company, but paying 15x sales for a hardware stock is nuts. The AI-everything-all-the-time bubble is popping. Michelle Caruso-Cabrera / @mcaruso_cabrera : Today was the first time the Nasdaq Composite closed down by more than 2.5% (-2.77%) while the Dow Jones Industrial Average closed with a gain since May 29, 2001. Thanks to @CNBC data team member Nick Wells.@wellsangels [image] @morningbrew : It's a *brutal* day to be a chip stock Micron -4.4% Nvidia -5.4% Broadcom -5.5% TSMC -5.6% Qualcomm -6.4% AMD -7.4% ASML -10.8% Forums: Hacker News : TSMC rides AI demand to raise revenue forecast, says no to US joint venture
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Context & Ripple Effects
This was an early broad selloff across the AI semiconductor stack: equipment supplier ASML, chip designer Nvidia and foundry-linked TSMC all declined sharply alongside the Nasdaq. The concentration of losses made the move relevant beyond any one company.
Related coverage later showed that sensitivity recurring when ASML cut its 2025 sales outlook and when Nvidia and Arm fell amid cooling AI enthusiasm. That arc suggests investors were repeatedly reassessing how much future AI demand and execution had already been reflected in semiconductor valuations.
First-order effects
ASML, Nvidia, TSMC and other named chip stocks faced an immediate market-value reset, while the Nasdaq recorded its steepest decline since December 2022.
The selloff also weakened the near-term equity-market signal around the AI supply chain, from lithography equipment through chip production and design.
Second-order effects
A synchronized drop across equipment, foundry and chip-design names raises the hurdle for peers to defend premium valuations; later pullbacks in Qualcomm and Intel underscore that this scrutiny extended beyond the initial group.
Suppliers and customers tied to AI infrastructure can become more exposed to swings in expectations: a reassessment of end demand can transmit quickly through the supply chain rather than remaining confined to a single chipmaker.
Third-order effects
If such episodes persist, AI semiconductor equities may trade less as isolated companies and more as a correlated infrastructure basket, amplifying market reactions to changes in growth expectations or guidance.
The pattern points to a more selective phase of the AI infrastructure cycle, in which investors distinguish between demand signals, capacity exposure and valuation—but the available coverage does not establish a lasting change in underlying demand.
The trend: AI infrastructure is becoming a tightly linked equity complex, where revisions to demand expectations can rapidly ripple from chip equipment to foundries and designers.
JUST IN: The Nasdaq officially posts its worst day since December 2022, falling nearly 3%. The S&P 500 erased ~$650 billion of market cap today. [image]
Tokyo Electron 8035 really 22% down in two days due to ASML domino effect after weaker prospects PE under 40 For the first time in many months. Very interesting development and I dodged a bullet on this one. [image]
A reflection from reviewing ASML's 2Q24 earnings: The stock price was down -12.7% overnight. I reviewed their earnings and the transcripts, and remain confident for stronger H2, and confident of FY2025, and through to FY2030. Market seems more focused on the short-term H1
The Nasdaq Composite closed down more than -2% on a day the Dow Industrials jumped to a new high. Since the Comp's inception in 1971, that's happened only twice. Apr 14, 1999 Jul 20, 2023 It fell more than -5% within the next month both times. [image]
$META is down a casual 10% in the last 7 trading days. Since we are 2 weeks away from earnings, I don't mind lowered expectations going into a print. In the end, fundamentals tell the story, not the price.
Intel $INTC is up 5% in premarket after the Bloomberg report that the Biden administration is considering using the FDPR rule to restrict China access to advanced semiconductor manufacturing tech + Trump interview comments on Taiwan (adds Taiwan info) [image]
Northland Capital Markets has a note out — quoted on @Investingcom — saying that Intel is the “only alternative” to TSMC and that they see 100% upside potential. https://www.investing.com/...
Today was the first time the Nasdaq Composite closed down by more than 2.5% (-2.77%) while the Dow Jones Industrial Average closed with a gain since May 29, 2001. Thanks to @CNBC data team member Nick Wells.@wellsangels [image]