Global Chip Stocks Slide as AI Spending Worries and China Competition Mount
Written by AI from finance.yahoo.com's report. Not checked by a person.
Semiconductor shares fell broadly across Asia, Europe, and the United States as investors grew concerned about the sustainability of AI investment and rising competition from China's memory-chip industry.
Chipmakers across three continents sold off on Tuesday, weighed down by doubts over AI spending and a fresh competitive threat from China. The declines were sharpest in Asia, where SK Hynix plunged 10%, Samsung Electronics lost 7.4%, and Tokyo-listed Kioxia fell as much as 13.3%. SoftBank Group, which has significant exposure to the global AI industry, sank 8.5% and led a broader retreat in Japan's semiconductor and electronics shares. In Europe, STMicroelectronics and Technoprobe each dipped 2.6%, ASM International lost 2.4%, Aixtron fell 1.9%, Siltronic slipped 1.4%, and ASML and BE Semiconductor each shed over 1%. In US premarket trading, Western Digital dropped nearly 4%, while Micron, Marvell Technology, and SanDisk each slid more than 2%. AMD and Broadcom fell about 1% apiece. The moves followed a weak Monday session on Wall Street, where the Nasdaq Composite declined 0.44% and Micron slid 3.9%. Adding to the pressure, China's ChangXin Memory Technologies announced over the weekend that it had made significant progress on a new chip architecture designed to increase memory density by packing more data into a smaller space, raising concerns about intensifying competition in the memory segment.
