On May 12, 2026, semiconductor stocks experienced significant declines, driven by a hotter-than-expected inflation report that revealed an annual inflation rate of 3.8% in April, the highest since May 2023. Qualcomm led the sell-off, plunging 15% to $202.50 per share, while other major players like Intel, Micron Technology, and Advanced Micro Devices saw drops exceeding 6%. The inflation surge, exacerbated by rising oil prices due to ongoing conflicts in the Middle East, has complicated the Federal Reserve's policy outlook, with expectations of a potential 25-basis-point rate hike by December. The Nasdaq-100 index fell 2.3%, reflecting investor caution as it erased much of its recent gains from a strong rally earlier in the month. Concerns over potential new taxes on AI-related profits further rattled investor confidence in semiconductor stocks, which have been central to the recent market rally. Despite the sell-off, the Nasdaq-100 remains up 4.21% for May, indicating ongoing volatility in the tech sector.