Which stocks were hit the hardest?

Micron Technology (MU) and Applied Materials (AMAT) were among the hardest hit, along with Nvidia and AMD.

Was there specific news that caused the decline?

No single news item, but reports of potential cuts in AI spending by major tech companies fueled concerns.

Nasdaq Tumbles as Micron, Chip Giants Lead Brutal Tech Rout

Wall Street experienced a brutal selloff on Tuesday, led by chip stocks like Micron Technology and Applied Materials, after fears of slowing AI spending. The Nasdaq composite fell over 2%, dragging down the broader tech sector.

June 23, 2026

1 min read

Source: GuruFocus.com

Wall Street experienced a brutal selloff on Tuesday, led by chip stocks like Micron Technology (MU) and Applied Materials (AMAT), after fears of slowing AI spending. The Nasdaq composite fell over 2%, dragging down the broader tech sector.

Possible Causes

The selloff was triggered by reports suggesting major tech companies may cut back on AI infrastructure spending, raising concerns about slowing demand for advanced chips. Recent comments from industry officials also hinted at potential market saturation.

Context

The decline comes after weeks of strong gains in tech stocks, leaving the market vulnerable to profit-taking. Shares of companies like Alphabet (GOOGL) also came under pressure, despite no specific negative news.

Similar Moves in the Sector

The rout was not limited to Micron and Applied Materials; other chip stocks like Nvidia and AMD also fell sharply, indicating a broad-based selloff in the sector.

Frequently Asked Questions

The Nasdaq fell due to fears of slowing AI spending, triggering a selloff in chip stocks like Micron and Applied Materials.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.