Nvidia fell 1.5 per cent in premarket trading on Tuesday after Reuters reported the Chinese startup is developing its own AI chip, a move that could reduce its reliance on Nvidia and Huawei chips. Memory chipmakers drove losses meanwhile, with Micron Technology down 4.7 per cent, Western Digital off 6.3 per cent and Sandisk losing 4.6 per cent. Nasdaq was set to open lower on Tuesday amid declining chip stocks, with investors questioning the momentum of the AI-led rally despite Samsung's strong earnings, while a report on China's DeepSeek making its own AI chip also hit sentiment.
Other chip-related stocks including Intel fell 3.3 per cent. Marvell Technology also eased and was down 4.5 per cent amid sector wide weakness. Another test of the appetite for chip stocks looms later this week, when South Korean giant SK Hynix's U.S. listing begins trading on the Nasdaq. Dow E-minis rose 156 points, or 0.29 per cent, S&P 500 E-minis lost 8.25 points, or 0.11 per cent and Nasdaq 100 E-minis shed 247 points, or 0.82 per cent.
