Chip Stocks Plunge Amid China Competition and AI Spending Concerns
Story updated Rewritten when the story materially grows; the wire is checked every 15 minutesAbout this data
A global selloff in semiconductor stocks intensified as concerns over China's advancements in chipmaking and the unwinding of the artificial intelligence spending boom led to significant declines. ASML shares fell to their lowest since early June following reports of a Chinese state-backed company beginning mass production of chipmaking machines, raising fears about competition.
Additionally, memory-chip stocks such as Micron and SK Hynix also experienced declines after the IPO of Chinese rival CXMT on the Shanghai Stock Exchange. The overall sentiment in the market remains cautious as investors react to these developments in the semiconductor sector.
Sources
Every quote below is verbatim from the article it is attributed to.
“A global selloff in semiconductor stocks deepened on Tuesday, as fresh signs of China’s progress in advanced chipmaking and mounting concerns over the artificial intelligence spending boom sparked another wave of selling across the sector.”
Bloomberg — Chip Rout Deepens on China Competition, Circular Funding Fears“ASML Holding NV shares slid to the lowest since early June after a report that a Chinese state-backed company has begun mass producing certain chipmaking machines, posing a potential threat to the Dutch firm’s sales.”
Bloomberg — ASML Slides on Report of China Starting DUV Tool Production“Memory-chip stocks Micron and SK Hynix fell Monday after Chinese rival CXMT rocketed in its IPO on the Shanghai Stock Exchange.”
IBD — Memory-Chip Stocks Micron, SK Hynix Drop After China Rival's IPO
“Asian stocks slide as China prompts chip competition fears”
nikkei asia — Asian stocks slide as China prompts chip competition fears“ASML stock tumbled on Monday on a report of competition emerging in China.”
IBD — ASML Stock Plunges On China News, Leads Chip Stocks Lower
Earlier versions
- Jul 27, 8:33 PM — CXMT Soars 465% on IPO, Surpassing Intel's Market Cap (3/2)