The contagion hit major industry players swiftly. Advanced Micro Devices shares plunged nearly 10%, while Broadcom and Micron Technology retreated 4% and 5.5%, respectively. Equipment manufacturers were not spared, with Applied Materials and Lam Research both sliding as concerns mount over potential capital expenditure cuts by chipmakers facing a prolonged slump in PC sales.

This market turbulence follows a bruising week for the tech giants. Amazon shares dropped 4.5% after the company missed third-quarter revenue and net income estimates. Alphabet also faced record-breaking pressure Thursday, as investors reacted to slowing growth in Google search revenue. These results have amplified anxiety regarding the sustainability of the aggressive AI investment cycles recently signaled by companies like Meta Platforms, which continues to commit billions to infrastructure despite shrinking free cash flows.