The Nasdaq-100 index slid into correction territory following a severe global sell-off in semiconductor and memory stocks driven by AI infrastructure spending concerns.

Major U.S. technology companies have reduced share repurchases by 17% over the past year to fund a massive surge in artificial intelligence spending.

AMD has entered a multi-billion dollar agreement to supply Anthropic with Instinct MI450 chips to help the firm scale its AI infrastructure and diversify hardware.

Samsung Electronics announced record-breaking quarterly profits driven by demand for memory chips, but shares dropped as analysts pointed to investor skepticism.

The electronics manufacturer’s quarterly results underscore significant capital expenditure in AI infrastructure. Hon Hai continues to play a key role in the global supply chain by assembling servers for clients like Nvidia.