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Chip selloff accelerates as investors weigh AI spending and deal risks
Oil prices slid to about $86 per barrel as investors awaited major tech earnings, with chip losses extending across Nvidia, SK Hynix, and Samsung.
A sharp selloff in chip stocks accelerated again overnight as investors weighed concerns about intensifying competition and potential funding structures tied to artificial intelligence, while markets also looked ahead to major tech earnings on Wall Street and in Asia, according to Yahoo Finance.
The report pointed to weakness in U.S. chip leader Nvidia after reports of another round of circular financing involving OpenAI, and it cited a blowout first day for China’s CXMT IPO that surged nearly 470% before fueling broader worries about chip demand and funding flows. It also noted that European tech shares fell after reports that Chinese firms are developing chipmaking technology that mimics ASML’s dominant offering, while SK Hynix shares dipped below their recent debut price ahead of its quarterly update and Seoul’s KOSPI fell nearly 11% on Tuesday.
Credit and energy markets were also in focus, with oil sliding further heading into Tuesday to around $86 per barrel amid a tense pause in the Iran conflict. Yahoo Finance added that attention will turn to the Federal Reserve’s two-day policy meeting, which begins Monday, as futures still price a meaningful chance the Fed remains active, even after the latest oil retreat.
The report said hyperscaler earnings season could center on the scale of AI infrastructure spending and the cash burn that comes with it, as both SK Hynix and Samsung are set to report in the coming days alongside expectations of heavy capex by major technology customers.
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