Major US chip stocks came under renewed selling pressure on Monday, October 12, following their recent rally, amid concerns over rising competition from Chinese memory chipmaker ChangXin Memory Technologies (CXMT).
Nvidia, which has been at the forefront of the AI-led rally, saw its shares fall 2% to an intraday low of $224.90. Broadcom, Advanced Micro Devices (AMD), and Intel declined 1.2%, 3.3%, and 3.6%, respectively.
Marvell Technology, Micron, and SK Hynix shed 4.2%, 5%, and 4.3%, respectively. Other major technology stocks, including Amazon and Tesla, also fell by up to 1%.
The weakness dragged the Nasdaq Composite down 0.46% to an intraday low of 27, 240, while S&P 500 and Dow Jones Industrial Average with modest gains.
ChangXin Memory Technologies has reportedly announced significant progress in a new memory-cell design aimed at increasing storage density, an area of innovation also being pursued by the world's largest memory makers, including Samsung Electronics, SK Hynix, and Micron.