AI stocks came under pressure again on Tuesday morning as investors weighed rising costs and growing competition from China in the semiconductor space.
Sandisk dropped 5.5%, Intel fell 4%, and Marvell declined 3.9% before the opening bell. Advanced Micro Devices, Micron, and Nvidia also slid in premarket trading.
Dutch chip-tool maker ASML fell 4.4% on Tuesday, following a 5.8% drop on Monday. The declines came after a report said a Chinese state-backed company is now mass-producing chip-making machines.
That report has rattled the broader chip sector, raising questions about how U.S. and European chipmakers will compete if China scales up its own semiconductor production.
Apple bucked the tech selloff, climbing 0.6% after rising 1.2% on Monday. The gains were enough to return Apple to the top spot as the world’s most valuable company, a title it had not held for more than a year.
Cadence Design Systems advanced 2.7% after beating analyst expectations for second-quarter earnings. The chip-design firm was seen as one of the few AI-related winners on the day.
Meta Platforms edged up 0.4% after announcing a joint venture with BlackRock to spend $14 billion on a data center campus in El Paso, Texas.
Johnson & Johnson rose 2.4% after the company agreed to pay $5.5 billion to settle lawsuits claiming its talc products caused ovarian cancer.
UPS gained 2.7% after the shipping company posted stronger-than-expected second-quarter earnings and raised its full-year outlook.
Celestica jumped 4% after reporting Q2 revenue of $4.7 billion, up 62% year over year. The company raised its full-year revenue forecast to $20.5 billion and said it expects 2027 growth to accelerate further.
Applied Digital rose 4% after its revenue surged 407% year over year to $258.7 million. The company also said it successfully deployed 175 megawatts of live AI capacity at its Polaris Forge campus on schedule.
On the downside, Universal Health Services fell 4% after cutting its full-year earnings guidance. The hospital operator cited a 9% rise in operating expenses as a key factor weighing on profitability.
Aehr Test Systems dropped 5% after filing a mixed shelf registration with the SEC, a move that investors often read as a sign of potential future share dilution.
The Federal Reserve also began a two-day policy meeting Tuesday, with inflation risks, including those tied to energy disruptions from the Iran conflict, on the agenda.
The post Today’s Market Movers: Sandisk, Intel, and ASML Fall as AI Stocks Face China Competition Concerns appeared first on CoinCentral.
