US chip stocks extend slide as China memory report, AI spending jitters hit sector
SOXX•US chip stocks fell, with the Philadelphia chips index down 1.5% for a fifth straight session, as reports of progress by China’s CXMT fueled competition fears and jitters over AI spending. The index is up more than 70% so far this year.
1. Chip stocks fall
US chipmakers dropped on Tuesday, with memory-related companies leading losses. The Philadelphia chips index fell 1.5%, its fifth straight decline and its lowest level in about four weeks.
2. Memory competition concerns
Media reports this week said China’s CXMT had made “key progress” on a new cell architecture to boost memory density. Micron fell 4.5% to its lowest since September 16, while SanDisk slid 4.3%, Seagate Technology dropped 5.9% and Western Digital declined 5.8%. Samsung Electronics and SK Hynix are also working on a similar innovation, and their shares fell more than 7% and 10%, respectively, in South Korea.
3. AI spending jitters
Broadcom CEO Hock Tan compared AI sector investments to “casino gambling” on Monday. Broadcom shares fell 0.3%; Nvidia slipped 0.4%, Intel fell 1.1%, AMD dropped 1.2% and Marvell Technology declined 2.2%. The Philadelphia chips index is still up more than 70% so far this year, after rallying on hopes of robust AI-related demand.
