Chip stocks pared losses Thursday after concerns over debt-heavy balance sheets triggered a broader AI-driven sell-off on Wall Street.
The overall Tech (XLK) sector trimmed declines as investors rotated into defensive sectors and bought up Treasurys, pushing long-dated yields substantially lower.
Shares of Nvidia (NVDA) and peer Advanced Micro Devices (AMD) fell roughly 1%, paring earlier losses. , after a global chip stock sell-off, as seen on AlphaSpace’s heatmap below.
Chip flash memory maker Sandisk (SNDK), which has been the S&P 500’s (GSPC) top performer in 2026, pared losses to close just below the flatline.
Memory highflier Micron (MU) turned positive throughout the session, while SK Hynix (SKHY) fell 1%. Both stocks were hit earlier this week over worries about Chinese competition.
Positive earnings and record profit from chip contractor TSMC (TSM) weren’t enough to lift the stock. Shares of the largest contract chip manufacturer pared losses to drop less than 1%.
217.23 -4.07 (-1.84%)
At close: 4:00:00 PM EDT
217.70 +0.47 (+0.22%)
NVDA MU SNDK
Worries over the cost of capital for companies with heavy debt on their balance sheets have collided with hotter-than-expected inflation data, sparking fresh concerns over how rising prices may affect the Federal Reserve’s next move.
Meanwhile, a spike in bond yields for Nvidia-backed CoreWeave (CRWV) has raised concerns about the neocloud’s debt-heavy balance sheets and rising interest rates amid sticky inflation.
CoreWeave shares erased a 7% drop on Thursday, closing up more than 5% after Nvidia (NVDA) CEO Jensen Huang expressed optimism about the data center operator following a 15% rout on Wednesday.
Ines Ferre is a senior business reporter for Yahoo Finance.
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