Global semiconductor stocks plummeted following a massive sell-off in Asian markets. Samsung Electronics shares fell over 13% in South Korea. SK Hynix shares dropped more than 14%.
The downturn pressured U.S. chipmakers in pre-market trading. Micron Technology shares declined over 5%. AMD fell more than 4% before the opening bell. Intel also dropped over 4% in early trading.
Investors reacted to intensifying competition from Chinese manufacturers. The debut of DRAM maker ChangXin Technology triggered a reassessment of the global memory chip landscape. Reports indicate Chinese firms are advancing mass production of domestic lithography equipment. China’s growing self-sufficiency threatens the long-term advantages of U.S. and European firms.
Broader anxiety regarding high capital expenditures for AI infrastructure fueled the sell-off. Investors question whether massive AI investments will generate timely profits. This re-evaluation of valuations impacted the entire semiconductor ecosystem.