US stocks slip as investors question AI chip hype
US stock markets slipped on Tuesday, with the S&P 500, Nasdaq, and Dow all closing lower.
The main reason? Investors are getting nervous about whether the hype around AI chips can really last.
Big names like Micron and Sandisk saw their shares drop, dragging down the whole semiconductor sector.
Samsung earnings disappoint investors
Chip stocks took a bigger hit after Samsung's latest earnings failed to satisfy investors with sky-high expectations and news broke that Chinese startup DeepSeek is building its own AI chip, possibly cutting into NVIDIA and Huawei's turf.
As Zachary Hill, head of portfolio management at Horizon Investments put it, recent AI gains have set expectations "almost impossible to beat."
All eyes are now on SK Hynix's US stock debut this Friday to see if the volatility continues.