AI infrastructure and semiconductor stocks sold off Wednesday after reports that Meta Platforms NASDAQ:META is exploring a cloud business that would sell excess AI computing capacity and models to outside customers.
The report lifted Meta shares about 8%, but it pressured companies already competing in the AI infrastructure market. AI cloud providers were among the hardest hit, with Nebius NASDAQ:NBIS falling nearly 12%, CoreWeave NASDAQ:CRWV dropping about 10%, and Super Micro Computer NASDAQ:SMCI declining roughly 4%.
Chip stocks also came under pressure. Nvidia (NVDA) fell around 2%, AMD NASDAQ:AMD dropped nearly 3%, while Intel NASDAQ:INTC, Arm NASDAQ:ARM, Taiwan Semiconductor NYSE:TSM and GlobalFoundries NASDAQ:GFS each lost about 4%. Micron (MU) slid 7% despite announcing a new long-term supply agreement with General Motors.
Networking and optical names were broadly weaker as well. Corning NYSE:GLW plunged about 10%, while Ciena NYSE:CIEN, Coherent NYSE:COHR and Celestica NYSE:CLS each fell around 3%.