Declining stocks in the artificial intelligence sector weighed on global markets on Thursday, June 25, 2026, as computer chipmakers and previous AI boom winners slumped and overshadowed gains across much of Wall Street. The downturn in these high-value companies left major U.S. indices mixed despite strong quarterly profit reports from several other large American corporations.
AI Sector Losses Weigh on Indices
The S&P 500 fell 0.5% during Thursday trading, marking a decline just one day after the index had come within 0.5% of its all-time high established the previous month. The Nasdaq composite experienced a more pronounced drop, falling 1.2%. Meanwhile, the Dow Jones Industrial Average saw a decrease of 153 points, or 0.3%, as of mid-afternoon Eastern time.
This downward pressure was driven largely by the performance of Nvidia, which fell 2.6%. Because Nvidia is the largest company on Wall Street by market value, its movement carries disproportionate weight; a 1% shift in Nvidia's stock impacts the S&P 500 more significantly than a 1% move from any other constituent.
Chipmaker and Memory Stock Declines
The decline extended to several other prominent companies that had previously benefited from the artificial intelligence surge. Micron Technology saw its stock fall 5.2%, a drop that reduced its total gains for the year to 200%. Other memory and storage manufacturers also faced significant sell-offs.
Sandisk shares dropped 10.6%, though the company maintained a substantial yearly gain of 500% since the start of 2026. Western Digital also saw its stock sink by 9.8%, leaving it with a year-to-date increase of 168%. These fluctuations come amid ongoing market concerns that AI-related stock prices may have risen too rapidly and become overvalued.
Healthcare Earnings Drive Gains
Despite the struggles in the technology sector, many other large-cap companies reported quarterly earnings that exceeded analyst expectations. This strength in non-AI sectors provided a buffer for much of Wall Street, preventing a more widespread market collapse.
In the healthcare sector, Abbott recorded a 10.9% jump in its stock price after the company delivered higher profits than anticipated and raised its full-year earnings forecast. UnitedHealth Group also saw positive momentum, with its shares climbing 2.5% following the release of better-than-expected financial results.
Market Divergence
The market volatility on June 25 was characterized by a sharp divide between the technology sector and the rest of the market. While the majority of stocks on Wall Street actually rose due to strong corporate earnings, the heavy losses in the AI-focused chipmaking industry dominated the global trading narrative.
