BUZZ - US chip stocks fall as concerns over AI spending intensify amid worries about interest rate hikes

October 15 - ** Due to concerns over rising bond yields and potential Federal Reserve interest rate hikes, U.S. semiconductor stocks fell in pre-market trading, which may increase (link) financing costs and curb spending on artificial intelligence infrastructure.

** The Philadelphia Semiconductor Index .SOX dropped 4.3% in the previous trading day, falling to its lowest point in about a month; the index has been declining continuously since October 7.

** Micron MU.O fell 4.3%, Western Digital WDC.O fell 5.6%, SanDisk SNDK.O fell 5.3%.

** Nvidia NVDA.O fell 1.7%, Broadcom AVGO.O fell 1.6%, Intel INTC.O fell 3.8%, Qualcomm QCOM.O fell 1.8%, Advanced Micro Devices AMD.O fell 3.4%.

** This week, media reported that Chinese memory chip manufacturer CXMT has made “key progress” in a new cell architecture designed to improve memory density, putting further pressure on global chip stocks.

** Despite the sell-off, the Philadelphia Semiconductor Index has risen by about 65% so far this year, supported by expectations of strong demand related to artificial intelligence.

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