U.S. chip stocks extend losses on AI financing, China competition fears

U.S. chip stocks extended a broad selloff in premarket trading as investors reduced exposure to AI-linked names amid concerns about the financing of massive AI infrastructure buildouts and rising competitive pressure from China. The weakness followed a sharp overnight decline in Asian semiconductor shares, with South Korea’s Kospi dropping about 11% and major chip names such as Samsung Electronics and SK Hynix tumbling. In the U.S., memory and semiconductor-related stocks including Micron, Intel, Marvell, Applied Materials, AMD and Super Micro Computer fell, while Nvidia extended Monday’s 5% drop after reports it may be involved in a large OpenAI-related data-center financing plan. The article suggests the market is rotating away from the most crowded AI beneficiaries, creating a risk-off tone for the broader chip sector and pressuring the US Tech 100 index.