Chip selloff deepens, Nasdaq drops 1.2% as AI spending worries return

Wall Street fell on Tuesday as a renewed semiconductor selloff dragged the Nasdaq composite down 1.2%, with the S&P 500 and Dow also slipping from records. Samsung's record profit failed to lift chip stocks, while reports that China's DeepSeek is developing its own AI chip and rising Middle East tensions added to pressure. SpaceX joined the Nasdaq 100 but shares slid below their IPO price, while Broadcom extended its Apple partnership through 2031 and TeraWulf announced a $19 billion AI data center lease with Anthropic.

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Semiconductor rout deepens, Nasdaq drops 1.2% on AI spending doubts The S&P 500 fell 0.4% to 7,503.85 and the Dow slipped 0.25% to 52,925.15, surrendering an intraday record high, as the Philadelphia Semiconductor Index plunged 4.65%. Samsung's record quarterly profit failed to buoy sentiment, and a report that Chinese AI startup DeepSeek is developing its own chip stoked fears of reduced reliance on Nvidia and Huawei, hitting Intel (-9.7%), AMD (-6.5%), Micron (-4.7%) and other chipmakers. Rising oil prices above $72 on US-Iran tensions after tanker attacks in the Strait of Hormuz also weighed on broader markets. 1 2 3 4 5 6 7

SpaceX joins Nasdaq 100 but shares slide below IPO price Elon Musk's rocket and AI company was added to the tech-heavy index on Tuesday, less than a month after its June 12 IPO, thanks to Nasdaq's fast-entry rule. Despite the expected wave of passive buying from index funds, SpaceX shares fell about 7% to $149.47, dipping below the $150 debut price, as broader tech weakness and profit-taking weighed. Musk's net worth dropped to $973 billion according to Forbes. 4 8 9

Broadcom extends Apple partnership through 2031, to supply custom ASICs Broadcom signed a new multi-year agreement with Apple to develop and supply custom application-specific integrated circuits (ASICs) for multiple generations of Apple devices, extending their collaboration to 2031. The deal, disclosed in an SEC filing, builds on prior agreements for RF chips and Wi-Fi/Bluetooth components. Broadcom shares rose more than 3% and Apple shares gained over 1% on the news. 10

TeraWulf's $19B AI data center lease with Anthropic boosts shares Bitcoin miner-turned-AI infrastructure company TeraWulf announced a 20-year lease agreement with Anthropic for a 400-megawatt data center campus in Kentucky, expected to generate about $19 billion in revenue over the term. CEO Paul Prager called the deal a turning point, and shares closed about 5% higher after surging 18% earlier. Compass Point raised its price target to $40 from $28. 11 12