Wall Street’s chipmakers were among the biggest fallers on Monday, as investors reacted to concerns that a slowdown in AI development could weaken demand across the sector.
Astera Labs fell 9.3%, Arm Holdings and Intel dropped around 7.5%, Micron lost 7.1% and Marvell Technology fell almost 7%. Nvidia, the world’s largest company by market value, fell about 3.8%.
The wider technology sector came under pressure after Anthropic chief executive Dario Amodei called for companies to slow the pace of AI development, raising concerns over future demand for chips, data centres and other AI infrastructure.
The sell-off comes as investors are already grappling with Brent crude above $108 a barrel and renewed inflation concerns linked to the Iran conflict, increasing pressure on the Federal Reserve to keep monetary policy tight.
Traders are pricing an 88% chance of a Federal Reserve interest-rate increase this week, adding further pressure to highly valued technology stocks.
The Nasdaq Composite fell as much as 1.3% to 25,992.54, while the S&P 500 declined 0.8% to 7,597.05 and the Dow Jones Industrial Average slipped 0.4% to 52,385.52.
