Semiconductor Stocks Plunge Amid US-Iran Tensions

Nvidia, AMD, and other major semiconductor stocks took a hit on Tuesday as tensions between the US and Iran weighed heavily on the market.

The uncertainty surrounding US-Iran negotiations pressured technology shares, with Nvidia leading the decline after announcing its $100 billion credit support for an OpenAI data center project in Ohio. The company will also invest $1.5 billion in SB Energy, which is developing the facility.

Advanced Micro Devices (AMD) declined about 3% as investors weighed reports that Google is working with AMD on a future tensor processing unit. This development could alter the competitive landscape for AI chips, according to Wedbush.

Broadcom and Micron Technology also suffered losses, with Broadcom dropping around 2% and Micron sinking nearly 4%. The memory sector has faced fluctuations as investors assess AI infrastructure spending and potential returns from large capital commitments.