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This article first appeared on GuruFocus.
Shares of AI infrastructure and semiconductor companies declined Wednesday after a report said Meta Platforms (META) is exploring a cloud infrastructure business that would offer external customers access to AI computing power and models.
The report sparked broad selling across AI-related names. Nvidia (NASDAQ:NVDA) fell about 2%, while Advanced Micro Devices (NASDAQ:AMD) lost nearly 3%, Broadcom (NASDAQ:AVGO) slipped around 2%, and Intel (NASDAQ:INTC) dropped about 4%. Infrastructure providers also came under pressure, with Nebius (NASDAQ:NBIS) falling nearly 12%, CoreWeave (NASDAQ:CRWV) losing about 10%, and Super Micro Computer (SMCI) declining around 4%.
Warning! GuruFocus has detected 3 Warning Signs with NVDA.
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Storage and networking stocks also weakened. Micron Technology (MU) dropped about 7% despite disclosing a long-term supply agreement with General Motors (GM), while Sandisk (SNDK) fell about 8%, Seagate Technology (STX) lost around 4%, and Western Digital (WDC) declined nearly 5%. Chip-equipment makers also traded lower, with KLA (KLAC), Lam Research (LRCX), Applied Materials (AMAT) and ASML Holding (ASML) posting losses.
