February 5 Market Summary: AMD Plunge Triggers Chip Stock Crash, Bitcoin Falls Below $73,000
Market Summary, February 5: A disappointing earnings report from AMD triggered a sharp sell-off in chip stocks, while Bitcoin fell below $73,000.
AMD’s Q4 revenue and EPS beat expectations, but its Q1 guidance only slightly exceeded forecasts, disappointing investors who expected stronger AI-driven growth. Higher operating expenses also raised profitability concerns. AMD plunged 17%, dragging down the broader semiconductor sector. Broadcom, Micron, Lam Research, and Applied Materials all fell sharply. The iShares tech-software ETF dropped 4%, extending its weekly loss to 17%, as AI automation tools sparked fears about the future of SaaS business models.
Bitcoin dropped to its lowest level since November 2024, closely tracking the sell-off in tech stocks. Crypto mining stocks tied to AI infrastructure, like Cipher Mining and IREN, also fell over 10%.
In contrast, gold continued its rebound, rising over 2% to break $5,000/oz after Monday’s 6% surge – its biggest gain since 2008. Silver jumped 7% above $85. The rally was supported by bargain-hunting, central bank demand, and a weaker dollar.
Key takeaways: Markets are growing concerned about AI’s profitability and soaring capital costs. Upcoming earnings from Google and Amazon, along with US-Iran talks, could dictate near-term direction.
marsbit02/05 02:37
