Chips sector bloodbath drags Nasdaq down 4.2% Tech stocks, particularly chipmakers integral to the AI economy, experienced a significant downturn on Friday due to rising bond yields and concerns about AI companies’ growth expectations. The Nasdaq plummeted 4.2%, its worst session in 14 months, with major companies like Nvidia and Broadcom seeing substantial losses. Discussions about potential government ownership stakes in AI companies and fears of AI-related inflation also contributed to the market’s decline.

• Tech stocks, especially chipmakers, plunged on Friday due to rising bond yields and concerns about AI growth expectations.
• The Nasdaq fell 4.2%, its worst session in 14 months, impacting companies like Broadcom, Nvidia, Marvell Technology, Micron Technology, Intel, and AMD.
• Meta’s stock declined amid reports of the company considering shares for its AI build-out.
• Discussions in Washington about the government taking ownership stakes in AI companies are ongoing.
• AI spending is raising inflation fears, as some Fed officials believe it’s boosting demand without clear productivity gains.
• Despite the recent pullback, chip sector stocks remain positive year-to-date. Continue reading https://www.axios.com/2026/06/05/stocks-nasdaq-tech-stocks