Nasdaq 100 Slides Into Correction as Chip Stocks Extend Sell-Off

The Nasdaq 100 fell about 1.4% on Monday and is now roughly 10% below its record high, meeting the common definition of a correction. The Philadelphia Semiconductor Index has dropped about 12% over three sessions, and Asian chipmakers followed, with South Korea's Kospi sliding more than 3% as Samsung Electronics and SK Hynix each lost around 5%.

Analysts describe a shift from thematic optimism about artificial intelligence to scrutiny of cash flows and returns on heavy capital spending. Oracle fell 8.8% on plans to raise $20 billion in debt and equity, while Marvell dropped 12.7% after announcing a $115 billion all-stock merger. The VIX rose to about 21.

For AI-server makers such as Super Micro Computer, which reports results this week, the backdrop raises the bar for guidance and margins. The Dow edged up 0.4% as money rotated away from technology.