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Sector Update: Tech Stocks Fall Thursday Afternoon

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Tech stocks were lower Thursday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) falling 3.1% and the State Street SPDR S&P Semiconductor ETF (XSD) dropping 7.4%.

The Philadelphia Semiconductor index slumped 6.2%.

In corporate news, Nvidia (NVDA) said it is expanding access to its AI infrastructure by introducing a revenue-sharing model that grants token credits to developers in exchange for a portion of the recurring earnings from the cloud networks. Its shares fell 2.3%.

Microsoft (MSFT) said Thursday it is launching Microsoft Frontier, a new operating business to provide frontier transformation services using AI. The company said it is investing $2.5 billion in Microsoft Frontier and embedding 6,000 employees at clients to co-design and deploy AI systems. Separately, Microsoft-backed OpenAI is in preliminary talks to give a 5% stake to the US government, the Financial Times reported. Microsoft shares were up 2%.

Amazon-backed (AMZN) Anthropic and the Trump administration have not held talks on the US government taking stakes in Anthropic, Reuters reported. Amazon shares were rising 1.4%.

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