NEW YORK: The Nasdaq ended sharply lower on Tuesday, weighed down by losses in Micron Technology and other chipmakers due to mounting doubts about the sustainability of Wall Street's AI-driven rally.
Chip stocks in Asia and the United States dropped after memory chip giant Samsung Electronics' blowout earnings report failed to satisfy investors with sky-high expectations.
Micron dropped 4.7% and Sandisk lost 7.3%. That helped send the PHLX chip index down 4.65%, reducing its 2026 gain to about 74%. Adding to worries about high-flying chipmakers, Reuters reported that Chinese startup DeepSeek is developing its own AI chip, a push that could reduce its dependence on Nvidia and Huawei chips.
Tuesday's chip selloff marked the latest bout of volatility among memory chipmakers and other AI-related stocks as investors worry that sharp gains related to the buildout of AI data centers may have left the shares too pricey.
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