META - Why Meta Platforms Taiwan Semiconductor Advanced Micro Devices and Other Artificial Intelligence (AI) Stocks Tumbled on Monday
2024-03-11 14:53:13 ET
One of the byproducts of the accelerating adoption of artificial intelligence (AI) has been the investor practice -- for better or for worse -- of viewing AI stocks collectively. In many instances, developments concerning one company in the space can have a ripple effect, bringing a broad cross-section of stocks in the space up or down with them. That appears to be the case Monday morning, as two developments seem to be having on outsize impact on AI companies.
With that as a backdrop, foundry Taiwan Semiconductor Manufacturing (NYSE: TSM) tumbled 4.1%, social media company Meta Platforms (NASDAQ: META) slumped 4%, chipmaker Advanced Micro Devices (NASDAQ: AMD) dropped 3.8%, computer memory specialist Micron Technology (NASDAQ: MU) declined 3.1%, and semiconductor specialist Broadcom (NASDAQ: AVGO) fell 1.9%, as of 1:32 p.m. ET on Monday.
A check of all the usual suspects -- regulatory filings, financial reports, and changes to analysts' price targets -- turned up one piece of negative company-specific news -- while surprisingly, there were a number of positive catalysts (more on that in a bit). Furthermore, troubling news about a high-profile company in the space seemed to put AI investors in a dour mood.
For further details see:
Why Meta Platforms, Taiwan Semiconductor, Advanced Micro Devices, and Other Artificial Intelligence (AI) Stocks Tumbled on Monday