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Still crashing! Storage and optical communications continue to plummet, Chinese concept stocks buck the trend and strengthen, and Buffett rarely speaks out

2026-07-17·newswire-us-stock-012320
Still crashing! Storage and optical communications continue to plummet, Chinese concept stocks buck the trend and strengthen, and Buffett rarely speaks out.

The “AI sell-off” is intensifying. Although the overall performance of U.S. economic data was strong and the second-quarter earnings season started well, the AI craze cooled and chip stocks continued to weaken, dragging down both the Nasdaq and S&P 500 to close lower. On Thursday (July 16) local time, the three major U.S.

stock indexes closed down across the board, with the Dow Jones Industrial Average falling 0.2%, the S&P 500 Index falling 0.51%, and the Nasdaq Composite Index falling 1.47%. Most large technology stocks fell. Google fell by more than 4%, Facebook and Nvidia fell by more than 2%, Amazon fell by nearly 2%, and SpaceX fell by more than 3%.

The closing price was lower than the IPO price for the first time. Chip stocks generally fell, with the Philadelphia Semiconductor Index falling 4.29%. Memory chip concepts continued to lead the decline.

SK Hynix fell more than 13%, SanDisk fell more than 12%, Seagate Technology fell 10%, Western Digital fell more than 9%, and Micron Technology fell more than 5%. In addition, Marvell Technology fell by more than 8%, Intel fell by nearly 6%, Micron Technology fell by more than 5%, ARM fell by more than 5%, and AMD Semiconductor fell by more than 5%.

Popular Chinese concept stocks clearly outperformed the U.S. stock market, with the Nasdaq Golden Dragon China Index closing up 1.79%. Bilibili rose nearly 4%, while JD.com, Pinduoduo, Baidu, Xpeng Motors, Li Auto and Weibo all rose more than 1%. Judging from the U.S.

stock market, the sell-off in the semiconductor sector continues to exert a significant drag on the broader market, especially the Nasdaq index, which is dominated by technology stocks. Paul Nolte, market strategist at Murphy & Sylvest, said: "This is entirely due to the increasing weight of chip stocks in the S&P 500 Index.

Three or four years ago, chip stocks accounted for only about 8% of the S&P 500 Index, and now it has exceeded 20%.

If you look at other market sectors, you can find that the overall performance is actually quite good." Many market participants believe that this round of continuous corrections in chip stocks has gone beyond fundamentals and is more affected by the switching of funding styles and the shift in market preferences.

JPMorgan research shows that hedge funds have significantly reduced their AI-related exposures and leveraged ETF positions in the past five to six weeks.

Bloomberg strategist Tatiana Darie pointed out that the sell-off in chip stocks has approached the technical threshold that has bottomed out many times in recent years, but whether it can stabilize still depends on whether ultra-large-scale cloud computing manufacturers continue to raise their AI capital expenditure expectations.

At the same time, the rare voice of "Stock God" Warren Buffett also attracted market attention. On July 15, local time, Buffett bluntly stated in an interview with CNBC host Becky Quick that when everyone is keen to "gamble" on topics such as AI, it is becoming "more and more difficult to find truly valuable investments." He compared the current U.S.

stock market to a "church with a casino" and criticized the explosive growth of single-day options trading as pure gambling. The current market backdrop confirms his concerns. U.S.

stocks have risen to record highs this year, with retail investors pouring in on a large scale to buy popular targets such as memory chip manufacturer Micron Technology and the recently listed SpaceX.

At the same time, stocks related to AI construction have been questioned for excessive speculation, and tools such as options and leveraged ETFs have further amplified market fluctuations.

At the same time, Buffett made it clear that Google is "more likely to be a winner than 90% to 95% of the stocks promoted by Wall Street" and personally admitted that this investment was initiated by him.

He also pointed out that Google’s capital expenditure plan this year is as high as 180 billion to 190 billion US dollars, and will continue to increase in 2027. This scale far exceeds any investment in the history of the railway industry.

Buffett also admitted a historic mistake - he admitted that it was a mistake to miss Google in its early stages when operating costs were lower and valuations were cheaper. (

#Stocks #Nvidia #Meta #Amazon #Google #ARM #AMD

Full text

Still crashing! Storage and optical communications continue to plummet, Chinese concept stocks buck the trend and strengthen, and Buffett rarely speaks out

The “AI sell-off” is intensifying. Although the overall performance of U.S. economic data was strong and the second-quarter earnings season started well, the AI craze cooled and chip stocks continued to weaken, dragging down both the Nasdaq and S&P 500 to close lower. On Thursday (July 16) local time, the three major U.S. stock indexes closed down across the board, with the Dow Jones Industrial Average falling 0.2%, the S&P 500 Index falling 0.51%, and the Nasdaq Composite Index falling 1.47%.

The “AI sell-off” is intensifying. Although the overall performance of U.S. economic data was strong and the second-quarter earnings season started well, the AI craze cooled and chip stocks continued to weaken, dragging down both the Nasdaq and S&P 500 to close lower. On Thursday (July 16) local time, the three major U.S. stock indexes closed down across the board, with the Dow Jones Industrial Average falling 0.2%, the S&P 500 Index falling 0.51%, and the Nasdaq Composite Index falling 1.47%. Most large technology stocks fell. Google fell by more than 4%, Facebook and Nvidia fell by more than 2%, Amazon fell by nearly 2%, and SpaceX fell by more than 3%. The closing price was lower than the IPO price for the first time. Chip stocks generally fell, with the Philadelphia Semiconductor Index falling 4.29%. Memory chip concepts continued to lead the decline. SK Hynix fell more than 13%, SanDisk fell more than 12%, Seagate Technology fell 10%, Western Digital fell more than 9%, and Micron Technology fell more than 5%. In addition, Marvell Technology fell by more than 8%, Intel fell by nearly 6%, Micron Technology fell by more than 5%, ARM fell by more than 5%, and AMD Semiconductor fell by more than 5%. Popular Chinese concept stocks clearly outperformed the U.S. stock market, with the Nasdaq Golden Dragon China Index closing up 1.79%. Bilibili rose nearly 4%, while JD.com, Pinduoduo, Baidu, Xpeng Motors, Li Auto and Weibo all rose more than 1%. Judging from the U.S. stock market, the sell-off in the semiconductor sector continues to exert a significant drag on the broader market, especially the Nasdaq index, which is dominated by technology stocks. Paul Nolte, market strategist at Murphy & Sylvest, said: "This is entirely due to the increasing weight of chip stocks in the S&P 500 Index. Three or four years ago, chip stocks accounted for only about 8% of the S&P 500 Index, and now it has exceeded 20%. If you look at other market sectors, you can find that the overall performance is actually quite good." Many market participants believe that this round of continuous corrections in chip stocks has gone beyond fundamentals and is more affected by the switching of funding styles and the shift in market preferences. JPMorgan research shows that hedge funds have significantly reduced their AI-related exposures and leveraged ETF positions in the past five to six weeks. Bloomberg strategist Tatiana Darie pointed out that the sell-off in chip stocks has approached the technical threshold that has bottomed out many times in recent years, but whether it can stabilize still depends on whether ultra-large-scale cloud computing manufacturers continue to raise their AI capital expenditure expectations. At the same time, the rare voice of "Stock God" Warren Buffett also attracted market attention. On July 15, local time, Buffett bluntly stated in an interview with CNBC host Becky Quick that when everyone is keen to "gamble" on topics such as AI, it is becoming "more and more difficult to find truly valuable investments." He compared the current U.S. stock market to a "church with a casino" and criticized the explosive growth of single-day options trading as pure gambling. The current market backdrop confirms his concerns. U.S. stocks have risen to record highs this year, with retail investors pouring in on a large scale to buy popular targets such as memory chip manufacturer Micron Technology and the recently listed SpaceX. At the same time, stocks related to AI construction have been questioned for excessive speculation, and tools such as options and leveraged ETFs have further amplified market fluctuations. At the same time, Buffett made it clear that Google is "more likely to be a winner than 90% to 95% of the stocks promoted by Wall Street" and personally admitted that this investment was initiated by him. He also pointed out that Google’s capital expenditure plan this year is as high as 180 billion to 190 billion US dollars, and will continue to increase in 2027. This scale far exceeds any investment in the history of the railway industry. Buffett also admitted a historic mistake - he admitted that it was a mistake to miss Google in its early stages when operating costs were lower and valuations were cheaper. (

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