US chip stocks fall as rate-hike fears raise AI spending concerns
SMH•US semiconductor shares fell premarket as rising bond yields and rate-hike concerns raised worries about borrowing costs and AI infrastructure spending. Micron fell 4.3%, Western Digital 5.6% and Nvidia 1.7%.
1. Chip shares decline
US semiconductor shares fell premarket as rising bond yields and Federal Reserve rate-hike concerns threatened to raise borrowing costs and curb AI infrastructure spending. In the prior session, the Philadelphia Semiconductor Index fell 4.3% to its lowest level in about a month and has declined since October 7. Micron fell 4.3%, Western Digital 5.6%, Sandisk 5.3%, Nvidia 1.7%, Broadcom 1.6%, Intel 3.8%, Qualcomm 1.8% and Advanced Micro Devices 3.4%. Media reports this week that Chinese memory chipmaker CXMT had made “key progress” on a new cell architecture aimed at increasing memory density also pressured global chip stocks. The Philadelphia chips index remains up about 65% so far this year, supported by expectations for strong AI-related demand.
