Huo Xing Finance reports: On July 2, news that Meta plans to build its own cloud business and sell excess AI computing power ignited the market, with investors interpreting it as a sign that capital expenditures by hyperscale vendors have peaked. Meta surged 8.81%, posting its best daily gain in six months, while storage chip stocks—seen as “shovel sellers”—were heavily sold off. The S&P 500 closed at 7,485.02, down 0.19%; the Dow Jones Industrial Average closed at 52,305.24, nearly flat; the Nasdaq Composite fell 0.66%, while the Nasdaq 100, dominated by chips and momentum stocks, dropped 1.5% to close at 29,809.13. Some market analysts believe the market is re-pricing the logic of the computing power supply chain, now facing a reversal. Investors are concerned that hyperscale vendors may slow their procurement, directly impacting “shovel sellers” in storage and semiconductors. According to BIT (bit.com) market data, AI-related U.S. stocks plunged across the board: Micron closed down 10.57%, AMD fell 6.8%, and NVIDIA declined 1%. Among storage stocks, SanDisk led the decline with a 10.62% drop; STX and WDC both fell over 5%. Smaller-cap stocks tied to CPO concepts suffered even steeper losses: GLW dropped 13.62%, AAOI fell 6.18%, and MRVL slid 8.71%. AI infrastructure stocks that had performed well over the past two days also retreated sharply, with AMAT and LRCX both falling nearly 10%. Meanwhile, South Korean markets continued their decline this morning, with the KOSPI opening down 5% before triggering a circuit breaker. The Nikkei 225 index fell 2.00% on the day. Notably, as enthusiasm for AI cools, Bitcoin appears to be attracting some capital inflows, rebounding last night and this morning to above $61,000.
Meta’s AI Cloud Plan Triggers Sell-Off in AI Stocks; South Korea’s Market Hits Circuit Breaker
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Summary
Meta’s AI Cloud Plan Triggers Sell-Off in AI Stocks as South Korea’s Market Hits Circuit Breaker. The Fear & Greed Index plunged sharply after Meta announced plans to build its own cloud infrastructure and sell excess AI computing capacity, sparking a broad market sell-off. AI-related stocks tumbled, with the Nasdaq 100 down 1.5%. South Korea’s market opened 5% lower and triggered a circuit breaker. Micron and AMD each fell more than 6%, while smaller AI infrastructure firms experienced steeper declines. Meanwhile, the crypto market held firm, with Bitcoin rising above $61,000.
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