Investing.com -- U.S. and European chip stocks dipped Tuesday, tracking steep losses among Asian peers amid renewed concerns over the sustainability of the global AI investment boom.
U.S.-listed shares of SK hynix (NASDAQ:SKHY) slid more than 4% in premarket trading by 07:50 ET (11:50 GMT), while Micron (NASDAQ:MU), Marvell Technology (NASDAQ:MRVL), and Lam Research (NASDAQ:LRCX) shed more than 2%. AMD (NASDAQ:AMD), Intel (NASDAQ:INTC), and Applied Materials (NASDAQ:AMAT) also fell around 2%.
In Europe, Technoprobe dropped nearly 4%, while {954894|Siltronic}} and Soitec fell 6% and 5.7%, respsctively. ASM International and BE Semiconductor lost 2.9% and 3.3%, respectively, Aixtron slumped 5.2%, while STMicroelectronics and Infineon slipped more than 3%.
ASML (AS:ASML) also slid 3%.
The declines followed a sharp selloff in South Korean memory giants Samsung Electronics and SK Hynix, which closed 3% and 4.2% lower, respectively. The benchmark Kospi index fell 3.7% to 5,552.74, snapping two consecutive sessions of gains and marking its lowest closing level since April 7.
The rebound in Asian chip stocks over the past two sessions proved short-lived, as lingering concerns over credit and profitability tied to AI-related investment remained unresolved.
The Tuesday selloff comes after shares tied to AI rebounded on Wall Street on Monday, clawing back part of last week's steep losses, while the rest of the market stayed shaky.
The S&P 500 climbed 0.4%, bouncing off its worst week since June, and the Nasdaq Composite jumped 1.1% on the strength of its heavy tech weighting. Most U.S. stocks outside the AI and technology sectors fell, however.
European markets fared worse, with major indexes sliding more than 1% after violent protests raised the prospect that France's government may need to boost spending to quell voter anger. That, in turn, added pressure to bond markets, pushing yields higher around the world.
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