Memory and AI chipmakers lead declines amid concerns over China competition and Nvidia’s $250 billion OpenAI funding plan.
Semiconductor stocks extended losses Tuesday, with Micron Technology and SK Hynix dropping over 5% in US trading. The PHLX Semiconductor Index fell more than 2% in the prior session, dragging Nvidia, AMD, and Broadcom lower.
The sell-off followed steep declines in Asian markets, where SK Hynix plunged 14% and Samsung Electronics fell 13%. European chip stocks also weakened on worries about circular financing and rising competition from Chinese firms like CXMT, which launched a major IPO this week.
Nvidia lost its top spot as the world’s most valuable company after reports surfaced of a $250 billion funding backstop for OpenAI. The news followed a $500 billion strategic deal with SK Group announced last week.