Tech Stocks Slide on AI Boom Fears; Netflix Drops 7%

Major technology stocks declined in a volatile trading session, led by Netflix (NFLX) which fell more than 7% after reporting its weakest revenue growth in years. Shares of Intel (INTC), Micron Technology (MU), and Advanced Micro Devices (AMD) also slipped amid growing concerns that the artificial intelligence boom may be losing steam.

Reasons for the Moves

Netflix (NFLX)

Netflix shares plunged over 7% after the streaming company reported its weakest revenue growth in years, raising investor concerns about its ability to sustain growth in a competitive streaming market.

Semiconductor Sector

Intel, Micron, and AMD fell without a clear catalyst, but analysts attributed the decline to broader worries that massive investments in AI may not yield expected returns. In contrast, Marvell Technology (MRVL) ended the session up 0.2%.

Context

The decline comes after weeks of strong gains in the tech sector, where investors had been betting that AI would drive growth. However, recent comments from some executives and mixed economic data have sparked doubts.

Similar Moves in the Sector

The moves were not limited to the mentioned stocks; the tech-heavy Nasdaq Composite also declined, indicating a broader sell-off in the sector.