Micron, SK Hynix Lead Global Chip Sell-Off as AI Concerns Weigh on Semiconductor Stocks

Semiconductor stocks extended their losses on Tuesday after the PHLX Semiconductor Index fell more than 2% in the previous session.

Micron, Nvidia and SK Hynix lead a broad global chip sector decline. [Photo: Micron Technology Facebook]

AI chip giant Nvidia slipped 0.5% in premarket trading, adding to its 5% decline on Monday, while AMD was set to open 4% lower.

Broadcom, Intel, Marvell, and Qualcomm also fell more than 2%, Ines Ferré reported for Yahoo Finance.

U.S.-listed shares of memory and storage companies Micron Technology, SK Hynix, and SanDisk all dropped more than 5%. Semiconductor equipment makers ASML, Applied Materials, and Lam Research also declined.

The sell-off followed sharp losses in semiconductor stocks overseas. In South Korea, SK Hynix plunged more than 14%, while Samsung Electronics fell over 13%.

On Monday, Nvidia lost its position as the world's most valuable company to Apple after reports said the AI chip giant was in talks to provide up to $250 billion in financing support for OpenAI's data center expansion.

The report followed Nvidia's previously announced $500 billion strategic collaboration with South Korea's SK Group.