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The sell-off in chipmakers Micron Technology and SK Hynix intensified in Tuesday’s trade on October 13, amid growing concerns over competitive risks and the sustainability of the AI-led rally. Micron shares have dropped another 6% to an intraday low of $929, extending its losses for a second consecutive session. SK Hynix shares, which had fallen 4% in the previous session, crashed another 4.4%, hitting their lowest level since late August Meanwhile, other major chip stocks, including Nvidia, Broadcom, Advanced Micro Devices (AMD), Marvell Technology, and Intel, were trading modestly higher after Monday's crash. The accelerated selling in Micron and SK Hynix followed a report that Chinese rival CXMT had made progress in developing memory technology that the two companies are also working on. CXMT aims to introduce a new server memory product based on the architecture by the end of 2026, company president Cao Kanyu said at an industry event in Shanghai over the weekend. The news came less than a day after Broadcom Inc. Chief Executive Officer Hock Tan said that many AI investors have little understanding of what they are betting on. The AI-led rally that propelled the Nasdaq to multiple record highs has also come under pressure as investor anxiety grows over its sustainability amid soaring valuations. The sell-off was not limited to US stocks but also spread to other Asian markets. South Korea’s benchmark Kospi suffered a steeper decline, plunging more than 7% intraday and falling below the 6,000 mark before recovering some of its losses. The index ended Tuesday down around 5%. Japan’s Nikkei 225 also dropped 1.8% to 67,777.52. With the S&P 500 nearly 120% above its 2022 low, the sustainability of the four-year bull market increasingly hinges on corporate earnings keeping pace with elevated valuations. Warnings about the AI trade are also mounting, with Broadcom CEO Hock Tan the latest to flag concerns. Last week, billionaire investor Ray Dalio warned that AI was a “classic bubble” nearing a potential bursting point, citing rising interest rates and the need for investors to convert wealth into cash. The International Monetary Fund has also recently warned that sky-high valuations, rising corporate debt, and escalating cyber threats linked to the artificial intelligence boom pose heightened risks to global financial stability. Disclaimer: We advise investors to check with certified experts before making any investment decisions. Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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