Nasdaq benchmarks retreat into the red; AI and chip shares extend selloff

The wider Nasdaq market measures have slipped below the flat line.

• At session highs, the Nasdaq Composite Index was up 362.46 point. It currently trades at 25380, down -56.28 points.
• The Nasdaq 100 index shows a 368.55 point gain. It is now at 28244, down -140.34 points.

The S&P index remains higher by 6.65 points; earlier it traded as high as +82.16 point.

For the Nasdaq Composite, the 200 day MA is 25065. The 38.2% level of the move up from the March low comes in at 25036. The session low was 25380.72.

On the Nasdaq 100, the 200 day MA stands at 27940.95. Its low reached 28244.50.

Should either index move below its 200 day MA, the technical bearish bias would grow.

The Magnificent 7 are split. Apple is declining before its earnings report after the close.

In the latest snapshot, the Magnificent 7 are mixed, and Amazon is out in front on the buying side. Its shares are up $8.43, or 3.51%, at $248.78. Tesla is also higher, rising $6.31, or 1.58%, to $406.13. Alphabet has added $3.74, or 1.34%, and is at $283.58. Nvidia is barely changed, up $0.28, or 0.14%, at $204.92.

Among the decliners, Apple is the weakest, down $7.72, or 2.24%, to $336.91. Microsoft has lost $4.64, or 0.89%, to $517.27, and Meta is lower by $4.05, or 0.66%, at $610.94. The results point to a selective recovery: buyers are supporting some names while others stay under pressure.

Intel, meanwhile, is still struggling after last week's steep post-earnings drop. Shares are down another $5.02, or 7.63%, at $60.74. The earnings report showed revenue growth of 21% and data-center and AI revenue growth of 78%, but the outlook pointed to weaker revenue and margins on a sequential basis, continued PC-market headwinds and supply constraints. That combination helps explain why solid results for the past period have not reassured investors.

For buyers of Intel, the first task is to stop the slide and build a base. The stock is extending today's losses, and there remains little evidence in this snapshot that sellers are relinquishing control.

The selling in AI and chip shares remains severe.

AI and chip-related shares are still under heavy selling pressure. Lumentum is the biggest decliner, down 18.07% to $688.75. Marvell follows with a drop of 11.84% to $173.15, and Astera Labs is lower by 9.58% at $233.92.

The pressure reaches beyond chipmakers. Nebius is down 7.67%, CoreWeave has lost 7.60%, and Western Digital is lower by 6.52%. Datadog, Credo and AMD are each down more than 6%.

Even though some Magnificent 7 names are attracting buyers, the wider AI and semiconductor basket paints a weaker picture. Investors are still selective, and sellers keep control of price action across much of the AI infrastructure trade.

The names in the AI and chip sector fall into five industry groups:

• Semiconductors and connectivity chips: Intel, AMD, Marvell, Astera Labs and Credo. These firms supply processors or chips that move data inside AI systems and between them.
• Optical networking and photonics: Lumentum. It supplies optical components for high-speed connections in data centers.
• AI cloud infrastructure: Nebius and CoreWeave. They provide infrastructure and computing capacity for AI workloads.
• Data storage: Western Digital. It supplies hard drives for data centers and other storage uses.
• Cloud software and monitoring: Datadog. It offers tools for monitoring applications, cloud infrastructure and system performance.

The breadth of the declines leaves little in the way of winners in the broader group.