Chip stocks came under renewed selling pressure in Thursday's trade, extending previous day sell-off, with AMD, Arm Holdings, Qualcomm, Micron Technology and Sandisk leading the declines.
The stocks fell between 9% and 17% amid concerns that a Democrat-led Congress could push for tighter restrictions on artificial intelligence (AI) infrastructure and data centre development. Disappointing reactions to earnings and business outlooks from Arm Holdings Plc and Qualcomm Inc. added to the selling pressure.
Qualcomm shares plunged 14% after investors were disappointed with the company's profit forecast, while Arm Holdings (ARM) dropped 15% after the chip designer's revenue guidance failed to impress Wall Street.
Micron Technology was another major laggard, falling 13% after the memory chipmaker paused plans for a Taiwanese plant amid labour disputes. Following a 7% decline in the previous session, Sandisk shares lost another 15% at their intraday low.
SK Hynix's ADRs also fell 14% after shares of the South Korean memory maker tumbled in overseas trading, alongside Samsung Electronics. Nvidia shares extended their decline to 9%, marking their biggest drop since April 2025.