U.S. stock indices dropped on Tuesday as the broader tech sell-off extended from the previous session, with chipmaker stocks leading declines. The S&P 500 fell 1.4%, the Nasdaq lost 3.3% and the Dow Jones dropped 0.1%. The VanEck Semiconductor ETF (SMH) tanked 7%, led by weakness in Micron (MU), Broadcom (AVGO) and Nvidia (NVDA) shares. Investors began to doubt the longevity of the AI boom, with attention shifting to the upcoming Micron earnings to gauge the strength of AI demand. “The risk-off trade reflects fear AI exuberance may be overdone,” said Chris Low at FHN Financial. The drop in South Korean equities also fueled investor concerns, as Samsung and SK Hynix fell on Tuesday, and foreign institutional investors offloaded about $2.5 billion of Kospi shares.