The US stock market experienced a broad selloff, with the tech-heavy Nasdaq Composite dropping 365.13 points, or 1.37 percent, to close at 26,184.72. The Philadelphia Semiconductor Index also fell, ending a four-session winning streak.

Intel shares were a major drag on the semiconductor sector, plunging after the company issued a weak fourth-quarter guidance. Intel expects revenue between 15 billion and 16 billion dollars, well below analyst estimates of around 17 billion dollars. Adjusted earnings per share are guided to 25 cents, short of the 43-cent consensus, with a gross margin of 38 percent. The company also warned that the PC market slowdown could continue into the first half of 2027. This guidance overshadowed a third-quarter beat, where adjusted earnings per share of 52 cents topped estimates.

The weakness in Intel and the broader semiconductor space was compounded by concerns about heavy spending on artificial intelligence. Alphabet shares fell 12.64 percent after its results raised doubts about whether massive AI investments are generating sufficient returns. This sentiment weighed on other chipmakers, with AMD, Micron, and Nvidia all closing lower. More than 2 trillion dollars in market value is set to be wiped from the Nasdaq 100 in October as these AI spending fears deepen.

For you, these moves show how quickly sentiment can shift from growth expectations to concerns about costs and returns. The selloff was not uniform, as defensive sectors like healthcare and consumer staples saw gains.

Markets are watching whether the PC slowdown is temporary and if AI investments begin to show clearer payoffs. If these concerns ease, sentiment may stabilize. If spending continues to rise without matching returns, pressure may persist. I am holding my positions and watching the market. Which signal matters more to you here, the guidance from chipmakers or the broader AI spending trend.

This is not financial advice.

#USStocks #Semiconductors
#IntelBeatsEarningsButStockPlunges
#StrategySTRCNears100ParValue
#USEarningsSeason
$INTC $AMZN $NVDA $MU $SNDK