Major US technology and internet stocks fell sharply on Tuesday, declining significantly in a broad-based sell-off that once again highlighted the extreme volatility of the sector.

The Nasdaq 100 index dropped 3%, bringing its cumulative decline from the peak reached earlier this month to over 7%.

This marks the second severe sell-off for the tech-heavy index within a week; it fell 4.8% last Friday, recording its largest single-day drop since April 2025.

Technology stocks were broadly lower, with chipmakers leading the decline. The Philadelphia Semiconductor Index fell 7.3%.

While the chip index is now down 14% from its recent high, it still shows a remarkable performance for the year, having gained 68% in 2026.

Among individual stocks: NVIDIA fell 3.9%, AMD dropped 9.9%, Marvell Technology declined 14.5%, Intel decreased 9.1%, Arm Holdings fell 13%, Micron Technology dropped 9.3%, and US-listed shares of Taiwan Semiconductor Manufacturing Company (TSMC) fell 4.7%.

Software stocks also moved lower, with the iShares Expanded Tech-Software Sector ETF falling 5.5%.

As a widely followed benchmark for the broader industry, this ETF is poised for its sixth consecutive day of declines, with a cumulative drop of 16% over that period.

Notable decliners included: Microsoft down 3%, Oracle down 6.2%, Palantir Technologies down 6.4%, Salesforce down 5.8%, and Adobe down 4.6%.