US Markets Lose Trillions Amid Qualcomm and Arm Reports

• Qualcomm's revenue from smartphone chips fell by 26% to $5.14 billion, while adjusted net profit dropped by 28%.
• The company issued a forecast for next quarter's earnings below analyst expectations, causing shares to fall more than 10%.

Arm reported record revenue of $1.44 billion, but income from technology licensing failed to meet forecasts.

Shares of Nvidia, Broadcom, Intel, and data center operators came under pressure. Investors increasingly doubt that current capital expenditures will yield quick returns.

Additional negative sentiment hit the market following the Democrats' victory in the US Congressional elections. Market participants fear stricter regulation of data center construction, which could slow AI infrastructure development and reduce demand for semiconductors.

US stock market losses peaked: within just 20 minutes of the trading session opening, exchanges wiped out approximately $1 trillion in asset value.

The US stock market experienced a massive sell-off, losing over $2 trillion at the open. Investors are reassessing profitability estimates for artificial intelligence investments amid pressure from negative quarterly reports from tech giants.

Key catalysts for the decline were the financial results of Qualcomm and Arm. The market reacted negatively to their performance, intensifying concerns about slowing returns on multi-billion-dollar investments in AI infrastructure.

• Arm demonstrated record revenue of $1.44 billion, yet income from technology licensing did not meet forecasts.
• The company's net profit shrank by 45%, and free cash flow plummeted by 73%.