US chip stocks decline before market open
There has been a significant decline in the shares of American and European chip and artificial intelligence companies, with major firms like Nvidia, AMD, Microton, and others losing nearly one trillion dollars of their market value since the beginning of the week. The drop is primarily driven by rising investor concerns over higher U.S. interest rates, financing challenges, conflicting market demand forecasts amid ongoing competition, and fears of a potential global chip surplus by 2029. This downturn is occurring amid global pressure from Asian and European markets, where chip manufacturing stocks have also experienced sharp declines. The decline is attributed to rising financing costs and reduced capital expenditure on artificial intelligence projects, as markets await stability and increased investments in the chip sector.
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