Tech Stocks Slide as Investor Enthusiasm for AI Wanes

The PHLX Semiconductor Sector index dropped more than 5%, though it holds a twofold increase over the last 12 months. SanDisk endured its most significant two-day loss in over a year, with shares tumbling more than 13%. Micron shares retreated by 6%, even as the company maintains a threefold gain for the year to date. The trend extended to international markets, where the Korea Kospi index fell nearly 8% as memory-chip giants Samsung and SK Hynix faced heavy selling pressure.

Corporate strategies in the sector are shifting under the weight of market volatility. Oracle shares declined for the ninth consecutive session, reflecting investor anxiety over the company’s aggressive debt-fueled push into AI infrastructure. Meanwhile, Germany’s SAP announced a strict clampdown on hiring and travel expenses to preserve capital for its own AI development. In the regulatory arena, Alphabet’s Google suffered a legal setback, failing to overturn a $4.69 billion European Union fine related to its Android operating system deployment requirements.