US chip stocks fell on Tuesday, led by memory-chip and data-storage companies, after reports of a technological advance by China’s CXMT raised concerns about intensifying competition. Questions about heavy artificial-intelligence spending added to pressure on a sector that has rallied sharply this year, Reuters reported.
The Philadelphia Semiconductor Index dropped 1.5%, extending its decline to a fifth consecutive session and touching its lowest level in about four weeks.
Micron Technology fell 4.5% to its lowest level since September 16, marking its fourth straight daily decline. Data-storage companies also suffered steep losses, with SanDisk down 4.3%, Seagate Technology falling 5.9% and Western Digital sliding 5.8%.
According to the Reuters report, Chinese memory-chip maker CXMT has made “key progress” on a new cell architecture designed to increase memory density. South Korea’s Samsung Electronics and SK Hynix are working on similar technology.
Samsung shares tumbled more than 7% in South Korea, while SK Hynix dropped over 10%.
Robert Pavlik, senior portfolio manager at Dakota Wealth, described the selloff as a rush to lock in profits as investors reassess the threat of greater competition.
Concerns about AI investment also weighed on the sector after Broadcom CEO Hock Tan compared such spending to “casino gambling.” Broadcom shares slipped 0.3%.
Elsewhere, Nvidia declined 0.4%, Intel fell 1.1%, AMD lost 1.2%, and Marvell Technology dropped 2.2%.
Despite its recent losses, the Philadelphia Semiconductor Index remains up more than 70% this year, supported by expectations of strong AI-related demand.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
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US chip stocks slide as China’s CXMT advances; AI spending fears rattle investors
Shares in US chip manufacturers tumbled, primarily influenced by memory and data storage firms, following competitive moves from China's CXMT. The sector faced significant pressure, stemming from concerns over escalating rivalry and demands for AI investments. Key players like Micron Technology, Seagate Technology, SanDisk, and Western Digital saw notable declines in their stock prices.
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This story was reported and first published by The Economic Times on 13 October 2026. HUE Legacy Ventures did not write it.
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