Chip Stocks Log Worst Stretch in 16 Months as AI Fatigue Grows

· Finance · United States · China

Semiconductor shares suffered their worst stretch in 16 months as investor patience with heavy AI spending wore thin, with the selloff spilling from US markets into Asian and European trading. Micron extended declines for a second day as competition from Chinese memory-chip makers intensified; China's leading memory producer CXMT has reportedly made progress on new designs, a development cited in the global stock rout. Comments by Broadcom's chief executive at a conference in Singapore, where he used the word "gamblers," were cited as a reason for the drops on both Monday and Tuesday. Wall Street is growing less patient with AI capital spending, and anticipation is building for Anthropic's investor day. The retreat marks a shift after a long run driven by AI optimism.

Why it matters：Semiconductors sit at the center of the global AI trade, so a sustained repricing driven by spending fatigue and rising Chinese memory competition would ripple through technology supply chains, capital expenditure plans and equity markets worldwide.

Key points

  • Micron fell for a second day as Chinese memory-chip competition intensified.
  • CXMT, China's leading memory chipmaker, reportedly made progress on new designs.
  • Broadcom's CEO used the word "gamblers" at a Singapore conference, a remark cited in the selloff.

Sources (original reporting)

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