Traders focused on AMD after its earnings report and forecast triggered a sharp selloff. The reaction reflected concern that the company is not making the AI inroads some investors expected. The move hit sentiment across semiconductors, where positioning has been crowded during the AI buildout.
Volatility stayed elevated but contained. The Cboe VIX Index hovered near 18.48, reflecting continued caution without a broad panic. Still, the tech slide remained influential because large-cap growth shares carry heavy index weight.
Strategists framed the moment as a repricing rather than an abandonment of AI. Charu Chanana, chief investment strategist at Saxo, said “AI is not being abandoned by markets,” but “it is being priced more carefully.”