Tech stocks were lower Wednesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) down 0.7% and the State Street SPDR S&P Semiconductor ETF (XSD) falling 2%.

The Philadelphia Semiconductor index lost 1.9%.

In corporate news, Zscaler (ZS) shares tumbled 31% after the cloud security company provided a fiscal Q4 revenue outlook below market estimates, even though it reported better-than-expected results for the prior three-month period.

Super Micro Computer (SMCI) shares added 2.1% after the firm said Verda has selected its Nvidia (NVDA) GPU-accelerated, rack-scale systems for its AI cloud infrastructure in Europe.

Taiwan Semiconductor Manufacturing (TSM) Chief Executive C.C. Wei told employees they will receive a more than 30% increase in profit-sharing payouts on average this year, driven by strong earnings growth fueled by AI demand, Bloomberg reported. Taiwan Semiconductor shares rose 2%.