The AI-driven stock rally has lost momentum, with investors booking profits across major semiconductor and technology stocks after a stellar 2026 run.
Nvidia, Alphabet, Samsung and SK Hynix are among the biggest losers, collectively erasing trillions of dollars in market value from recent peaks.
The broad-based correction reflects valuation concerns, as investors reassess the sustainability of AI-led gains after one of the strongest technology rallies in recent years.
The artificial intelligence (AI)-driven rally that powered global equity markets for much of 2026 is showing signs of losing momentum, with investors booking profits in several high-flying technology stocks after their sharp run-up this year.
Among the biggest casualties, US-based Nvidia and Alphabet have fallen about 11% each from their recent peaks, erasing nearly $633 billion and $538 billion in market value, respectively. Taiwan Semiconductor Manufacturing Company (TSMC), which had surged more than 52% since the beginning of 2026, has slipped around 5% from its recent high, wiping out more than $111 billion in market capitalisation.
4 July 2026
Get the latest issue of Outlook Business
Other AI heavyweights have also witnessed sharp corrections. Broadcom has declined 16.3% from its recent peak, while Meta Platforms has fallen 9%.
The selling pressure has spread across semiconductor and memory-chip makers. Micron Technology and South Korea's Samsung Electronics have each dropped around 20% from their recent highs, erasing about $260 billion and $280 billion in market value, respectively. The declines come after the two companies had rallied nearly 244% and 125%, respectively, since the start of the year.
South Korea's SK Hynix has seen an even steeper correction. After soaring more than 200% in 2026, the memory-chip maker has fallen 24% from its peak, resulting in a market value erosion of around $328 billion. Intel has also retreated 23% after gaining roughly 200% earlier this year.
The weakness has extended beyond chipmakers. China's Tencent Holdings has declined 28% from its recent high, while Applied Materials has fallen 16% after rallying about 135% in 2026.
Other technology names have also come under pressure. Lam Research has dropped 18%, Oracle has declined 44%, and Arm Holdings has fallen 27% from their recent peaks. Lam Research and Arm Holdings had previously rallied around 100% and 200%, respectively, since the start of the year.
The broad-based pullback suggests investors are reassessing valuations across the AI ecosystem after one of the strongest technology rallies in recent years, with profit booking replacing the momentum that had driven semiconductor and AI-linked stocks higher through most of 2026.
