Global semiconductor stocks tumbled on Tuesday after Chinese memory chipmaker ChangXin Memory Technologies (CXMT) reported progress on a new chip design, raising concerns that intensifying competition could threaten the market positions and pricing power of established players Samsung Electronics, SK Hynix and Micron Technology.
The selloff spread across Asian and US markets as investors reassessed the outlook for memory chipmakers that have benefited from surging demand for AI-related applications. The move also renewed concerns about elevated valuations across the AI sector and whether heavy investment in the technology will generate sustainable returns.
