Stocks in multiple sectors moved sharply in midday trading as investors reassessed growth prospects tied to artificial intelligence, digested a wave of earnings, and reacted to guidance updates across consumer, biotech, gaming and semiconductors. The broad selloff in technology weighed on several chip and AI infrastructure names, while a cluster of results from healthcare and freight lifted specific stocks on the day.
Key takeaways
- Semiconductors fell: The VanEck Semiconductor ETF dropped 7% amid renewed concern about the AI trade; individual names like Astera Labs, Qualcomm and Nvidia also declined.
- Guidance drove biotech upside: Regeneron jumped 11% after third-quarter results beat estimates and full-year non-GAAP gross margin guidance improved.
- Data storage and consumer engagement sold off: Sandisk fell 12% despite an earnings and revenue beat after announcing an eight-for-one forward split, while Twilio dropped about 17% on weaker current-quarter organic growth expectations.
- Gaming guidance hit Roblox: Shares fell about 20% after disappointing fourth-quarter guidance.
- Energy and select healthcare strengthened: Chevron and Exxon Mobil rose after strong quarterly profit growth, while AstraZeneca gained over 7% on better-than-expected results.
What drove the move in semiconductors and AI infrastructure
Semiconductor stocks slid after technology shares weakened and investors renewed questions about the durability of the artificial intelligence trade. The VanEck Semiconductor ETF fell 7%, while Astera Labs dropped 12%, Qualcomm slid 11% and Nvidia lost 4%.
AI buildout-related exposure also weighed broadly. The iShares A.I. Innovation and Tech Active ETF fell more than 7%, with Micron Technology down more than 5%, Lumentum Holding off more than 10%, and Arista Networks down close to 8%. CNBC also reported that a proposed deal for Lumentum by Marvell Technology is not expected to come at a large premium, adding to uncertainty around pricing and deal expectations.
Earnings and guidance reactions across healthcare, data storage and enterprise software
In biotech, Regeneron rallied 11% after third-quarter results beat analyst estimates. According to the company’s reported figures, Regeneron earned $20.07 per share excluding items on revenue of $5.12 billion, compared with a FactSet consensus of $16.42 per share and $4.56 billion. For the full-year period, Regeneron raised its outlook for non-GAAP gross margin on net product sales to about 86%, up from earlier guidance of 84% to 85%.
AstraZeneca also advanced, gaining more than 7% after a better-than-expected third-quarter. The company reported core earnings of $2.79 per share on revenue of $16.21 billion, versus analyst expectations of $2.60 per share on revenue of $16.05 billion.
Not all earnings beats translated into gains, however. Sandisk fell 12% even after reporting an earnings and revenue beat in its fiscal first quarter. Sandisk delivered adjusted earnings of $49.51 per share compared with analysts’ estimates for $46.22 per share, according to LSEG. The stock weakness coincided with an announced eight-for-one forward stock split, suggesting investors focused on factors beyond the immediate quarter.
Twilio dropped about 17% after guidance for the current quarter indicated slower organic revenue growth. Twilio expects fourth-quarter revenue in the range of $1.595 billion to $1.605 billion and year-over-year organic revenue growth between 11% and 12%, down from 16% organic growth reported in the third quarter.
Consumer and digital platforms: Roblox guidance and Reddit log-in change
Roblox shares fell about 20% after the company delivered disappointing guidance for the fourth quarter. Projected bookings for the period ranged from $1.89 billion to $2.00 billion, while analysts anticipated about $2.00 billion.
Reddit also came under pressure. The company said users will be required to log in to access the social media platform and issued weaker-than-expected revenue guidance for the fourth quarter. Shares fell 29%, as the combination of monetization and engagement-related changes met investor skepticism.
Elsewhere in consumer staples, Mondelez International rose more than 3% after reporting third-quarter adjusted earnings of 78 cents per share, above the FactSet consensus of 71 cents. The company behind Sour Patch Kids and Oreo cookies added to gains as investors responded positively to the earnings beat.
Transportation and manufacturing: FedEx Freight jumps, Intel sinks
FedEx Freight climbed 15% after strong guidance for the fourth quarter. The freight services business expects quarterly revenue between $2.3 billion and $2.37 billion, compared with $2.07 billion a year earlier. It also anticipates adjusted operating income between $185 million and $205 million, up from $162 million in the prior year period.
Intel, by contrast, tumbled 29% after issuing weaker-than-expected guidance for the fourth quarter. The company expects adjusted earnings per share of 25 cents on revenue between $15 billion and $16 billion. LSEG estimates cited in the report call for 43 cents per share and revenue of $17.1 billion, underscoring the magnitude of the shortfall versus expectations.
Energy strength and select industrial momentum
In energy, Chevron added about 1% after reporting third-quarter net income surged nearly 200% to $9.9 billion and revenue came in better than expected. Exxon Mobil gained more than 1% after profits doubled to $15.4 billion from $7.5 billion in the year-earlier quarter.
Rivian rose more than 8% after posting better-than-expected third-quarter results. According to the report, Rivian lost an adjusted 48 cents per share on revenue of $2.16 billion, compared with analyst expectations of a 62-cent loss on revenue of $1.99 billion. The company also increased its guidance on deliveries.
What to watch next
Investors will likely focus on whether the pullback in AI-related semiconductors broadens or stabilizes as more company guidance comes in. Additional trading may hinge on follow-through from earnings and guidance—particularly in tech, transportation and platform businesses—along with upcoming macro catalysts such as inflation and central bank signals that typically influence the discount rates applied to growth stocks.
