US chip stocks slide as China’s CXMT advances; AI spending fears rattle investors

The Philadelphia Semiconductor Index dropped 1.5%, extending its decline to a fifth consecutive session.

The Philadelphia Semiconductor Index dropped 1.5%, extending its decline to a fifth consecutive session and touching its lowest level in about four weeks.

Micron Technology fell 4.5% to its lowest level since September 16, marking its fourth straight daily decline. Data-storage companies also suffered steep losses, with SanDisk down 4.3%, Seagate Technology falling 5.9% and Western Digital sliding 5.8%.

According to the Reuters report, Chinese memory-chip maker CXMT has made “key progress” on a new cell architecture designed to increase memory density. South Korea’s Samsung Electronics and SK Hynix are working on similar technology.

Samsung shares tumbled more than 7% in South Korea, while SK Hynix dropped over 10%.

Robert Pavlik, senior portfolio manager at Dakota Wealth, described the selloff as a rush to lock in profits as investors reassess the threat of greater competition.

Concerns about AI investment also weighed on the sector after Broadcom CEO Hock Tan compared such spending to “casino gambling.” Broadcom shares slipped 0.3%.

Elsewhere, Nvidia declined 0.4%, Intel fell 1.1%, AMD lost 1.2%, and Marvell Technology dropped 2.2%.

Despite its recent losses, the Philadelphia Semiconductor Index remains up more than 70% this year, supported by expectations of strong AI-related demand.