U.S. semiconductor stocks fell sharply Tuesday, retreating from record highs driven by artificial intelligence.
Qualcomm shares dropped over 11% during the session. This decline marked the company's worst trading day since 2020. Intel, Micron, and Sandisk also recorded significant losses during the broad market sell-off.
Higher-than-expected consumer inflation and rising oil prices fueled a wider risk-off sentiment. Investors sold positions to lock in profits following a period of substantial gains.
Analysts describe the decline as a valuation recalibration rather than a shift in the sector's long-term positive outlook.