AI Chip Concerns Trigger Global Tech Stock Sell‑off

U.S. equity indexes slipped on June 26, with the S&P 500 down 0.05%, the Nasdaq down 0.24% and the Dow Jones down 0.09%. AI‑related chip stocks led the decline; the PHLX chip index fell 5.3% on the day and 7.9% for the week, while memory‑chip makers such as Sandisk, Micron and Broadcom saw double‑digit drops. Apple announced price hikes for iPads and MacBooks, citing soaring memory‑chip costs, intensifying worries that higher component prices could curb consumer demand for devices and, consequently, for AI‑related semiconductors.

European markets mirrored the weakness. The pan‑European Stoxx 600 fell about 0.8% and the German DAX tumbled 1.3% to 24,671 points, pressured by losing semiconductor names like Infineon, Siemens Energy and Zalando. French and other European indices also recorded losses as technology‑heavy stocks retreated.

In Asia, the sell‑off deepened. South Korea’s Kospi triggered a circuit‑breaker after an 8% intraday plunge, closing 5.8% lower; Samsung Electronics and SK Hynix each dropped more than 5%. Japan’s Nikkei fell over 4% and the Taiwan and Shanghai indexes lost around 1–3%. The broader Asian slump was driven by profit‑taking after recent AI‑fuelled rallies and concerns over sustained memory‑chip demand.

Overall, the market correction reflects heightened investor caution about AI‑related valuations, elevated chip‑costs and the sustainability of rapid price gains across the sector.