Stocks and funds tied to artificial intelligence infrastructure slid in midday trading as investors weighed concerns over the leverage built by AI-focused companies and renewed pushback against data centers. The pullback spread to parts of the semiconductor complex, while a separate wave of earnings results boosted select names in healthcare, industrials, and consumer staples.
Alongside company-specific catalysts, the broader move reflected a cautious stance toward high-expectations growth segments—particularly those exposed to capital spending cycles, operating-cost scrutiny, and regulatory or community headwinds for power-hungry data center projects.
Key takeaways
- AI infrastructure and semiconductors fell: Companies such as Nebius, CoreWeave, and Lumentum dropped sharply, while the VanEck Semiconductor ETF fell for a fifth day.
- Primary catalyst was risk repricing: Investors appeared to react to concerns about debt levels tied to AI buildouts and backlash against data centers.
- Earnings drove divergence: Several firms including GE HealthCare Technologies and Mondelez rose on results that beat expectations, while others slid after guidance cuts or operating miss.
- Market implication: Even with earnings beats, investors are differentiating between durable growth signals and tighter margin or capital-spending risk.
What drove the midday declines
AI infrastructure companies were among the biggest decliners. Nebius shares fell more than 8%, Lumentum slid about 7%, and CoreWeave dropped more than 7% to a 52-week intraday low. Investors also pointed to insider selling at some of these firms, adding to concerns that sentiment may be weakening around the economics of AI buildouts.
The pressure extended beyond AI infrastructure into the semiconductor trade. According to CNBC, the VanEck Semiconductor ETF sank nearly 4% for a fifth straight day, as traders backed away from chip exposure. Advanced Micro Devices fell 5%, Broadcom slid nearly 2%, Nvidia dropped nearly 3%, and NXP Semiconductors declined 7%. The common thread was a market reset toward valuation risk in a sector still closely tied to AI-related demand expectations and capacity expansion.
Company results: who gained and who fell
Insurers and consumer names diverged. Lemonade shares plunged 22% after the company said spending rose significantly in the second quarter. Gross spending increased 30% to $64 million, while technology development expense grew 34% to $30 million.
In contrast, Mondelez rose about 4% after reporting second-quarter profit of 73 cents per share on revenue of $9.36 billion. Analysts polled by LSEG expected 68 cents per share and $9.20 billion revenue, and adjusted gross margin of 34% beat the StreetAccount consensus of 32.8%.
Guidance cuts weighed on industrial and tech players. Lennox International fell about 20% after trimming full-year guidance. The company’s outlook for earnings per share was reduced to $23 to $24, down from an earlier $23.50 to $25 range. The FactSet consensus stood at $24.44 per share.
KLA Corp dropped 9% after issuing guidance viewed as disappointing. The company forecast first-quarter adjusted earnings of $1.16 per share, plus or minus 10 cents, compared with an LSEG estimate of $1.14 per share. Revenue was expected around $4 billion, plus or minus $200 million, versus the Street’s estimate of $3.92 billion.
Manhattan Associates surged about 25% after second-quarter earnings and revenue topped analyst expectations. The company also raised full-year forecasts for profit and revenue.
Semiconductor and AI peers showed mixed responses. Teradyne gained 3% after second-quarter adjusted earnings and revenue, along with third-quarter profit and sales forecasts, topped Street estimates, according to FactSet data.
Vertiv fell 16% despite mixed results. According to CNBC, while earnings and revenue beat expectations, organic year-over-year revenue grew 17.8%, below the FactSet consensus of 23.6%—a key detail that appears to have outweighed the headline beat.
Healthcare, consumer staples, and auto had notable winners. GE HealthCare Technologies rose about 10% after reporting second-quarter adjusted earnings per share of $1.13, beating a FactSet consensus of $1.04. The company also reaffirmed its full-year earnings guidance for 2026.
Ford Motor climbed 3% after posting second-quarter adjusted earnings that beat expectations and raising its 2026 earnings outlook, though automotive revenue came in slightly below LSEG expectations.
Biogen rose 2% after beating consensus estimates on revenue and earnings and raising full-year adjusted EPS guidance.
Other earnings-related moves. Procter & Gamble fell more than 2% after quarterly revenue missed analyst expectations. PPG Industries dropped 6% after second-quarter earnings per share and adjusted EBITDA missed estimates, although it reaffirmed full-year guidance for earnings per share.
Rocky Brands jumped about 15% after reporting second-quarter earnings per share, excluding items, that more than tripled year over year. The company said several brands saw strong double-digit growth rates and that it benefited from tariff refunds.
Skyworks Solutions declined 3% after adjusted margin in the third quarter narrowly missed analysts’ expectations, and its fourth-quarter outlook came slightly below LSEG consensus.
What analysts and investors are focusing on
In industrial and AI-adjacent names, investors appeared to prioritize forward visibility and cost discipline. Baird Equity Research downgraded Caterpillar’s Dow Jones Industrial Average stock to neutral, and CNBC cited a view that “investment hurdles are emerging everywhere,” tied to growing momentum behind data center opposition. Meanwhile, Semiconductors faced an additional valuation reset as the ETF’s five-session decline signaled broad de-risking.
At the same time, winners tended to share either tighter-than-expected operational outcomes or clearer beats versus consensus. Mondelez and GE HealthCare each saw positive reactions anchored in earnings and margin performance, while Manhattan Associates rallied on both beat-and-raise results.
Bigger picture: the market’s next signal
With AI infrastructure and chips under pressure, investors will likely watch whether upcoming company updates address funding and buildout economics—especially amid scrutiny of debt and power-intensive data center expansion. In the near term, attention should shift to additional earnings releases and any further guidance changes that clarify demand durability and margin trajectories across the semiconductor and AI supply chain.
