Optical supplier Credo Technology plummeted 14% after earnings on Wednesday and another 10% during Thursday's session despite triple-digit revenue growth and upbeat guidance.
The VanEck Semiconductor ETF is down nearly 6% this week following last week's 7% decline. The ETF, whose leading components are Nvidia, Taiwan Semiconductor Manufacturing Co. and Broadcom, soared 72% in 2023 and nearly 39% last year.
The challenge on Wall Street for chipmakers underscores the pressure they're under as the AI buildout stretches into its fourth calendar year. Tariffs from the Trump administration and chip export controls have added to investor concerns.