Tech, Chip Stocks Slide As Trump's Iran Warning Rattles Markets

U.S. technology and semiconductor stocks retreated Thursday amid escalating geopolitical tensions and a sharp spike in oil prices, triggering a broad risk-off move across markets.

Big Tech Slides

Mega-cap technology names traded lower in early session activity. Meta Platforms Inc. (NASDAQ:META), Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOGL) all came under pressure as investors rotated out of high-growth assets.

Semiconductor Gains Unwind

The pullback extended across the semiconductor space, reversing earlier-week gains. Nvidia Corp. (NASDAQ:NVDA), Advanced Micro Devices Inc. (NASDAQ:AMD), Broadcom Inc. (NASDAQ:AVGO), Intel Corp. (NASDAQ:INTC), Arm Holdings Plc (NASDAQ:ARM), Marvell Technology Inc. (NASDAQ:MRVL), Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), Micron Technology Inc. (NASDAQ:MU) and ON Semiconductor Corp. (NASDAQ:ON) moved lower in tandem.

Chip stocks had rallied earlier on speculation that President Donald Trump could wind down the U.S. military campaign against Iran. However, that optimism faded as the geopolitical outlook shifted.

Oil Spike Drives Volatility

Crude prices surged in volatile trading after Trump warned of potential U.S. military action against Iran within the next two to three weeks, dampening expectations for near-term de-escalation.

U.S. West Texas Intermediate crude for May delivery jumped 8.2% to $108.36 a barrel, while June Brent crude rose 8% to $109.16. Trump attributed the surge to alleged Iranian attacks on oil tankers and regional targets, while signaling the U.S. could "hit" Iran "extremely hard" even as diplomatic talks continue, CNBC reported.

The mixed messaging has heightened uncertainty.

Strait Of Hormuz Disruption Adds Pressure

Ongoing disruption in the Strait of Hormuz has intensified concerns around global energy supply. Tanker traffic through the critical shipping route — which typically carries a substantial share of global oil and gas flows — has slowed significantly since the conflict escalated. Analysts warn that normal operations may not resume in the near term.

Conflicting signals around a potential ceasefire have further unsettled markets. While Trump suggested Iran had sought a ceasefire tied to reopening the waterway, Iranian officials denied the claim and maintained control over the route. The lack of clarity around negotiations continues to cloud the outlook for both energy markets and global risk assets.

Price Action

In premarket trading, Meta Platforms fell 2.68% to $563.73, Nvidia declined 2.91% to $170.64, Broadcom dropped 2.96% to $304.20, Amazon lost 2.38% to $205.55, and Taiwan Semiconductor slid 4.23% to $327.06, according to Benzinga Pro data.

Photo by Sudarsan Thobias via Shutterstock