As the third quarter kicks off, markets are unwinding the historic rally seen in companies supplying picks and shovels to the artificial intelligence boom.
This pullback hits well-known names including SanDisk, Micron and Applied Materials, all of which have posted double-digit percentage declines over the past two trading sessions. It also extends to firms that pivoted away from Bitcoin mining to focus on the more lucrative AI computing power business.
Keel Infrastructure (KEEL) and Cipher Mining (CIFR) led the slide, each falling 14% on Thursday. Core Scientific (CORZ), IREN (IREN), TeraWulf (WULF), Hut 8 (HUT) and Riot Platforms (RIOT) all dropped nearly 10%.
The Nasdaq Composite hit its intraday low, down 1.5%. Bitcoin (BTC) rose 3% over the prior 24 hours to trade at $61,600
The Nasdaq Composite erased nearly 1% of its early session gains and slid 0.6% by late morning.
Top AI-linked chip names including Micron (MU), AMD (AMD), SanDisk (SNDK) and Intel (INTC) shed between 4% and 10%.
Meanwhile, several beaten-down Magnificent Seven stocks attracted buying interest: Apple (AAPL) climbed 4%, while Microsoft (MSFT) and Amazon (AMZN) each rose roughly 1.5%. Tesla (TSLA), however, dropped 7% even after reporting robust June delivery volumes.
The Nasdaq pullback weighed on Bitcoin, which retreated to $61,500 yet remained up 2.7% over the prior 24 hours.
