TLDR
- Nasdaq 100 futures fell 1.8% as chip and AI stocks sold off broadly
- Netflix dropped nearly 10% after missing Q2 revenue expectations and cutting its full-year guidance
- Intuitive Surgical fell 9% despite beating earnings, as investors focused on an unchanged outlook
- SpaceX slid 5% after its Starship V3 test flight was aborted due to engine failures
- AMD, Dell, Intel, and Micron all fell between 2% and 5% as the AI trade lost momentum
Netflix Misses, Chip Stocks Slide as Markets Head Lower
Friday’s trading session turned rough for tech investors. Nasdaq 100 futures dropped 1.8%, with chip makers and AI-linked stocks bearing the brunt of the selloff.
Advanced Micro Devices fell 3.5%. Dell dropped 4%. Intel lost 4.3%. Micron declined 2%, and Sandisk dropped 2.1%.
Advanced Micro Devices, Inc., AMD
Other names caught in the slide included Applied Materials, Lam Research, Marvell, and Super Micro Computer.
The broad chip selloff came without a single catalyst. Investors appear to be stepping back from the AI trade after a long run-up.
Netflix was one of the session’s hardest-hit stocks. Shares fell around 10% after the company reported Q2 revenue that narrowly missed Wall Street expectations.
Revenue grew 13.4% year over year, driven by membership growth, pricing, and advertising revenue. But free cash flow of $1.53 billion came in well below forecasts.
Netflix also narrowed its full-year 2026 revenue guidance to a midpoint of $51.2 billion, below the $51.4 billion analysts had expected.
The company said it plans to change how it shares engagement data with shareholders. It also flagged expanding use of generative AI across its platform.
Intuitive Surgical and SpaceX Also Fall
Intuitive Surgical was among the worst performers in S&P 500 premarket trading, falling around 9% to 12% depending on the source.
The company beat second-quarter earnings and revenue estimates. But it kept its full-year da Vinci procedure growth forecast unchanged at 13.5% to 15.5%.
Investors were also watching a tariff-related margin squeeze. Intuitive said gross margins of 68% to 69% include roughly a 1% revenue hit from tariffs.
SpaceX fell around 5% after scrapping the first test flight of its upgraded Starship V3 rocket.
The launch was aborted automatically when some Raptor engines failed to ignite. CEO Elon Musk said two engines would be replaced, with the next attempt likely early the following week.
The failed launch extended SpaceX’s five-day losing streak. Shares have now dropped below the company’s $135 IPO price.
STAAR Surgical also fell around 12%. The company reported Q2 revenue that doubled year over year, but investors focused on geopolitical headwinds and an ERP system rollout that caused operational challenges during the quarter.
The Broader Picture
The S&P 500 and Dow Jones Industrial Average were both set to open lower alongside the Nasdaq. The selloff came even as domestic inflation data provided some support for the market.
The most recent development: SpaceX’s next Starship launch attempt is expected early the following week, pending engine repairs.
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