AI stocks plunge as broad profit-taking hits semiconductors, cloud, and tech ETFs after Jim Cramer's reversal warning.

AI-related stocks, especially in semiconductors, cloud infrastructure, and tech ETFs, saw sharp declines following a warning from CNBC host Jim Cramer about a potential market reversal. The sell-off was broad, reflecting profit-taking in a crowded AI momentum trade rather than a sector abandonment. Key chipmakers and AI infrastructure firms like Dell and Super Micro Computer experienced significant drops, while major ETFs such as SOXX and AIQ also fell. This suggests traders are cautious amid fresh concerns, including Korean policy impacts on memory-chip profits, signaling a possible pause or correction in the AI investment theme.