Nasdaq 100 Enters Correction as Semiconductor Stocks Drop 10%

The Nasdaq 100 entered correction territory as of July 28, declining more than 10% from its recent peak amid a selloff in semiconductor and memory stocks. Dell dropped 13%, Intel fell 7%, and several memory manufacturers declined approximately 10% during the US trading session. The downturn raised questions about the sustainability of AI infrastructure spending, with JPMorgan projecting that hyperscalers will spend nearly $870 billion on AI-related infrastructure by the end of 2026, representing a 77% year-over-year increase.

Dell, Intel, and Memory Stocks Record Double-Digit Declines

Dell cratered 13% during the US session, while Intel shed 7%. Several memory manufacturers fell roughly 10%. The losses extended beyond US markets, with Asian semiconductor stocks experiencing even steeper declines.

JPMorgan Projects $870 Billion AI Infrastructure Spending by End of 2026

JPMorgan projects that hyperscalers, the cloud giants funding AI infrastructure development, will spend nearly $870 billion on AI-related infrastructure by the end of 2026. This represents a 77% increase year-over-year.

Samsung and SK Hynix Fall More Than 15% as Chinese Chipmaking Reports Emerge

Asian exchanges experienced sharper losses, with Samsung and SK Hynix both plunging more than 15%. Reports emerged that a Chinese state-backed company has begun mass production of chipmaking equipment, a development that threatens to reshape competitive dynamics in the semiconductor supply chain.

Nasdaq 100 Previously Corrected in March 2026 During $17 Trillion Market Rout

The Nasdaq already went through a correction in March 2026, part of a broader market rout that wiped out approximately $17 trillion in value across global markets. Bear market territory, which would require a 20% decline from recent highs, remains a threshold investors are monitoring.

SpaceX Joined Nasdaq 100 on July 7 Following IPO

SpaceX joined the Nasdaq 100 on July 7 following its IPO. SpaceX shares had already corrected significantly from their initial highs by the time the company was formally added to the index.

FAQ

What is a market correction?

A market correction occurs when an index declines more than 10% from its recent peak. The Nasdaq 100 crossed this threshold as of July 28.

How much did semiconductor stocks fall during this correction?

Dell dropped 13%, Intel fell 7%, and several memory manufacturers declined approximately 10% during the US session. Samsung and SK Hynix both plunged more than 15% in Asian trading.

What is JPMorgan's projection for AI infrastructure spending?

JPMorgan projects that hyperscalers will spend nearly $870 billion on AI-related infrastructure by the end of 2026, representing a 77% year-over-year increase.