Midday trading was marked by sharp declines across artificial intelligence infrastructure and semiconductors as the Nasdaq Composite slid into correction territory. In company-specific moves, TripAdvisor plunged after leadership changes and softer guidance, while EPAM Systems and Unity Software surged on stronger-than-expected results and raised outlooks.
Key takeaways
- AI infrastructure and chip-related stocks led the losses: several AI infrastructure and semiconductor names fell between roughly 7% and 20% as broad tech weakness weighed on the complex.
- Catalyst for the tape: investors reduced exposure to chips and AI build-out beneficiaries after weakness in the technology sector.
- Company moves drove dispersion: TripAdvisor dropped 22% after guidance disappointment and leadership departures, while EPAM rose 22% and Unity jumped 11% on raised guidance.
- Forward outlook mattered most: results were not enough for some stocks when guidance or profitability trends missed expectations.
What drove the market move
Shares tied to the AI data center build-out came under pressure during midday trading. Multiple companies in the theme declined sharply, including iShares A.I. Innovation and Tech Active ETF, which was down 10%, alongside notable single-name declines such as Lumentum (down 14%), Comfort Systems (down 10%), CoreWeave (down 12%), Corning (down 13%) and nVent Electric (down more than 12%).
Investors also appeared to step back from semiconductors amid broader tech weakness. The iShares Semiconductor ETF fell more than 9%, with chip and related hardware names contributing to the slide: Astera Labs fell 15%, AMD dropped 14%, and both Nvidia and Broadcom each fell roughly 7%. Memory-related stocks were especially weak, with Micron down nearly 13% and SanDisk down 20%.
Market reaction: earnings and guidance separate winners from losers
Market direction amplified the impact of earnings-related news, producing wide dispersion among individual stocks.
- TripAdvisor: Shares fell 22% after a leadership shakeup and disappointing guidance. The company said CEO Matt Goldberg would leave, with Finance Chief Michael Noonan also departing. The report also indicated TripAdvisor forecast a fourth-quarter sequential revenue decline in the low teens.
- Motorola Solutions: The stock rose 5% after the company raised full-year guidance. Motorola Solutions projected adjusted earnings of $17.94 to $17.99 per share on revenue of about $13.05 billion, compared with FactSet consensus of $17.71 per share and $12.97 billion in revenue.
- EPAM Systems: EPAM surged 22% after raising full-year earnings guidance. The company forecast adjusted earnings of $13.23 to $13.31 per share, and disclosed a $1.5 billion increase to its buyback authorization.
- Unity Software: Unity advanced 11% after reporting results that topped expectations and posting third-quarter revenue and earnings above analyst estimates.
- Qualcomm: Qualcomm dropped 11% despite a slight earnings beat, after its outlook for the current quarter came in below analyst expectations.
- AppLovin: AppLovin rallied 26% on stronger-than-expected third-quarter results, including revenue and profitability metrics above consensus.
- Expedia: Expedia slid more than 13% after guidance for the current quarter was mostly weaker than expected.
- Arm Holdings: Arm fell 12% after a strong earnings report, reflecting that the stock still faced selling pressure despite the adjusted earnings figure beating consensus.
- Cava: Cava declined 9% after missing expectations on earnings and revenue.
- Wolfspeed: Wolfspeed dropped 14% after posting a wider-than-expected adjusted loss in its fiscal first quarter.
- Figma and Snap: Figma fell 15% after posting third-quarter results that were described as beating expectations but still drawing selling, while Snap dropped 15% after third-quarter revenue narrowly missed consensus and daily active user metrics trailed expectations.
- Dutch Bros: Dutch Bros tumbled 22% after cutting full-year adjusted EBITDA guidance and reporting weaker-than-expected same-store sales.
Company-specific catalysts across sectors
Outside semiconductors and AI-adjacent themes, notable moves reflected earnings revisions, guidance changes, or operational updates.
- Tapestry: Shares gained 6% after the company raised its full-year outlook, including non-GAAP earnings per share and revenue targets for fiscal 2027.
- Corpay: Corpay rose 8% following third-quarter results that beat expectations and an increase in its full-year outlook for adjusted EBITDA.
- Unity, EPAM and AppLovin: Investors rewarded improved forward metrics and profitability, with each stock benefiting from results and guidance that exceeded consensus.
- Fasterly: Fastly fell 25% even as earnings and revenue in the third quarter topped estimates, with the shares reacting to developments tied to the company’s broader plan and the quarter’s guidance read-through.
Bigger picture for investors
With the Nasdaq sliding into correction territory, the midday tape suggested investors were prioritizing forward guidance and risk control over past momentum in high-beta growth areas. For AI and semiconductor-linked names, the market’s focus appeared to shift toward whether earnings and outlooks can offset sensitivity to broader tech weakness. For stocks with clearer guidance beats or raises—such as EPAM, Motorola Solutions and Corpay—the reaction was more constructive, underscoring that catalysts can overcome sector headwinds, at least in the short run.
Investors will likely watch whether the technology sector stabilizes and how guidance revisions trend across semiconductors and AI infrastructure beneficiaries. The next set of catalysts will be additional earnings reports and upcoming macro data, alongside expectations for central-bank commentary that can influence discount rates and appetite for long-duration growth exposure.
