Sandisk, Intel, and Marvell faced sharp declines in premarket trading on Tuesday amid mounting concerns over rising production costs and intensifying competition from China in the AI semiconductor sector. Sandisk fell 5.5%, Intel slid 4%, and Marvell dropped 3.9%. Other chipmakers like AMD, Micron, and Nvidia also saw their stocks dip before the market opened.
ASML, the Dutch manufacturer of chip-making equipment, took a hit as well, dropping 4.4% following a 5.8% fall the day before. The selloff was triggered by reports that a Chinese state-backed firm has begun mass-producing semiconductor fabrication machines. This development casts doubt on how U.S. and European firms will maintain their edge if China significantly scales up domestic chip production.
While much of the chip sector struggled, Apple rose 0.6%, reclaiming its position as the world’s most valuable company after a 1.2% gain on Monday. Cadence Design Systems also made gains, climbing 2.7% after beating second-quarter earnings forecasts, standing out as one of the few AI-related stocks to buck the trend. Meta Platforms ticked up 0.4% following news of a $14 billion data center project with BlackRock in Texas.
Elsewhere, Johnson & Johnson climbed 2.4% after agreeing to a $5.5 billion settlement over talc-related cancer lawsuits. UPS gained 2.7% on the back of stronger-than-expected quarterly earnings and an improved full-year outlook. Celestica’s shares rose 4% after reporting a 62% revenue jump in Q2 and raising its full-year revenue forecast. Applied Digital surged 4% following a 407% revenue increase year-over-year to $258.7 million.
This material is for informational purposes only and does not constitute financial advice.
