Global Markets Shaken as AI Chip Selloff Leads to Major Losses
A ferocious selloff in semiconductor stocks rattled global markets on Monday, July 27, 2026. This event sent shockwaves into Asian equity futures, wiping hundreds of billions off the market caps of the world’s top chipmakers. NVIDIA (NVDA) shed nearly 5%, Advanced Micro Devices (AMD) plunged 8.3%, and Intel (INTC) fell over 3.5%. Meanwhile, the VanEck Semiconductor ETF (SMH) dropped more than 4% in a single session.
The carnage extended overnight, with equity-index futures pointing to sharp drops in Japan and South Korea. A US gauge of semiconductor giants fell 2.2%, causing the S&P 500 to close virtually flat despite most individual stocks rising. The iShares Semiconductor ETF (SOXX) has now declined roughly 13% over the past month.
CNBC’s Jim Cramer warned on July 27 that the selling was being driven by “monstrous, motivated and often margined” institutional players — code for forced liquidations by leveraged funds. Analysts at Wedbush remain bullish long-term, calling the current environment “the 3rd inning of a 9-inning game” for AI infrastructure spending. Goldman Sachs noted that NVIDIA’s forward P/E of 21.7 looks attractive versus its five-year average of 72.
Source: 24/7 Wall St. – Jim Cramer Warns the Semiconductor Selloff Has ‘Monstrous’ Sellers