Cerebras Systems shares plummeted during the session despite the company posting earnings that outperformed analyst expectations. The sharp decline reflects a growing wariness among traders who are increasingly skeptical of high-flying AI valuations. Oliver Pursche, senior vice president at Wealthspire, noted that many investors are currently purchasing assets based on momentum rather than underlying fundamentals or long-term utility.

Micron Technology provided a stark contrast to the broader cooling trend. After dropping 5% ahead of its report, the stock surged over 15% in late trading as robust demand for memory chips bolstered quarterly revenue. This volatility underscores the ongoing scramble for hardware supremacy, further evidenced by SK Hynix’s plans for a $29 billion capital raise to fund AI expansion. Meanwhile, OpenAI and Broadcom have deepened their collaboration, moving to develop custom silicon as the ChatGPT parent pushes to control its own technological infrastructure.