News Peg
Aside from SK Hynix’s earnings miss, the selloff comes amid concerns about advancements reported by Chinese chipmaking and AI companies. Memory chipmaker CXMT, which made its market debut earlier this week, saw its stock price soar an additional 12.6% on Wednesday, following a 466% gain on Monday after going public. Along with American semiconductor giant Micron, Samsung and SK Hynix control nearly 90% of the global RAM chip market, which is in high demand due to the ongoing build-out of AI infrastructure. CXMT, reportedly being courted by Apple as an alternative RAM supplier, is seen as a major emerging threat to the trio. China has also reportedly made major strides in advanced chip-making machines, which could threaten Dutch semiconductor giant ASML and Taiwanese chipmaker TSMC. ASML’s shares have fallen more than 11% in the past week, while TSMC’s stock has dropped more than 6.5%.
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What To Watch For
Despite the selloff in Asia, U.S. stock futures remained largely flat. Memory chipmaker Micron’s stock remained slightly below the closing price of $820 after plunging more than 8.8% on Tuesday. Chipmakers AMD, Intel and Qualcomm inched up slightly in early trading on Wednesday after declines of 8.1%, 5.8% and 4.2%, respectively, on Tuesday. Shares of AI chipmaking giant Nvidia—which ceded the title of the world’s most valuable company to Apple earlier this week—were also flat on Wednesday.
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