Updated
Updated · CNBC · Jun 26
Chip Stocks Slide Up to 12% as AI Cost Fears Leave Nvidia Out of Tech Bounce
Updated
Updated · CNBC · Jun 26

Chip Stocks Slide Up to 12% as AI Cost Fears Leave Nvidia Out of Tech Bounce

3 articles · Updated · CNBC · Jun 26

Summary

  • SoftBank sank more than 12%, SK Hynix fell over 8% and Samsung lost about 9% as concern over rising AI infrastructure costs spread through chip and tech shares worldwide.
  • U.S. semiconductor names also retreated—Intel lost 3%, Sandisk 6%, Arm 3%, Marvell 4% and Micron 3%—while Nvidia failed to join a broader rebound in Magnificent Seven stocks.
  • Europe and Greater China followed lower, with ASML down 2%, Infineon 5%, SMIC nearly 7% and Alibaba more than 6%, extending the pressure beyond pure chipmakers.
  • Apple's 1% rebound came after it raised MacBook and iPad prices on higher component costs, reinforcing fears that soaring semiconductor prices could squeeze big tech margins.
  • Arm's weakness also reflected wider AI funding doubts after reports OpenAI may delay its IPO to 2027, even as Qualcomm's new Meta data-center chip deal offers Arm some royalty upside.

Insights

Will soaring chip costs finally burst the profit bubble for big tech?
How vulnerable is the global economy to a few chipmakers controlling the AI revolution?