Shares of technology companies fell despite reassuring earnings, as markets worry about valuations among chip makers.
"The earnings strength is lifting average shares, but high expectations in the tech sector are leaving them priced for perfection," Navellier & Associates' Louis Navellier said in a note.
Taiwan Semiconductor Manufacturing delivered an earnings beat. It also pledged to invest an additional $100 billion in the U.S. and plans to spend a record amount, in a strong signal that the artificial-intelligence boom is alive.
Nvidia chips are set to power Japan's artificial-intelligence push, with the government planning to buy thousands of the company's next-generation semiconductors to build an AI ecosystem on its own soil.
Write to Paulo Trevisani at paulo.trevisani@wsj.com
