The semiconductor sector faced another difficult session on Wall Street, with Nvidia, AMD and Micron all trading lower as investors took profits after a two-year AI-driven rally.

Analysts said the selling was not tied to weaker demand for AI chips. Instead, investors are questioning whether share prices have moved too far ahead of future earnings. AI infrastructure spending remains strong, but markets are asking whether those investments will translate into real profits anytime soon. That debate has become a recurring theme across the chip industry, where expectations for data centers, cloud providers and related hardware have risen quickly alongside spending.

Nvidia also made headlines for another reason. Reports emerged that the chipmaker could help finance OpenAI’s new AI data centre project, reportedly valued at up to $250 billion. The proposal underscores how large the AI investment cycle has become, but some investors are concerned that capital spending across the industry is growing faster than returns. It also highlights how closely chipmakers, software developers and large-scale infrastructure projects are now linked in the broader AI supply chain.

Nvidia remains at the center of the global AI build-out, even as its stock comes under short-term selling pressure.

Coca-Cola gave investors something to cheer about. The beverage company reported quarterly earnings and revenue above Wall Street expectations. Demand held up globally, and the company raised prices without losing customers. That pricing power helped protect margins.

As tech stocks sold off, investors moved toward stable, dividend-paying businesses such as Coca-Cola. The company’s ability to generate steady cash flow made it a popular safe haven, showing how earnings resilience can matter even when market leadership is concentrated in growth and technology names.

PayPal also delivered better-than-expected results. Payment volumes grew and profitability improved, easing concerns about the company’s turnaround plan.

Management pointed to progress in checkout tools, merchant services and AI-powered payment features. Leaders said they are confident in the rest of the year, citing healthy consumer spending and stronger platform engagement. For investors watching the digital payments sector, the update suggested the company is still working to prove its product upgrades are translating into more efficient growth.

Crude oil prices continued to fall. Easing geopolitical tensions reduced fears of supply disruptions, pushing prices lower.

Cheaper oil helps airlines, logistics firms and consumer businesses by cutting fuel costs. It also reduces inflation pressure across the broader economy. That matters for markets because energy prices remain a major input into headline inflation, which can influence how quickly central banks feel comfortable adjusting interest rates.

Lower inflation could give central banks more room to adjust interest rates in the second half of the year.