Chip stocks were largely in the red on Tuesday after Alibaba's (BABA) Chairman Joe Tsai expressed concerns about a potential AI bubble in the U.S.
AI chipmakers Nvidia (NVDA), Advanced Micro Devices (AMD), Marvell Technology (MRVL) and Broadcom (AVGO) slipped nearly 1%, each.
Tsai, who was at HSBC's Global Investment Summit in Hong Kong, said he thought it was worrying when people start to talk about building data centers on spec, adding that he was seeing "the beginning of some kind of bubble." He added that "people are talking about $500 billion, several hundred billion dollars. I don't think that's entirely necessary. I think in a way, people are investing ahead of the demand that they're seeing today."
Shares of Micron (MU) fell about 3%, while GlobalFoundries (GFS) dipped about 2%, and Lattice Semiconductor (LSCC) declined about 1%. Taiwan Semiconductor Manufacturing (TSM), Texas Instruments (TXN) Intel (INTC) were largely flat but in the red territory. Analog Devices (ADI) climbed about 1%.
Meanwhile, chip equipment makers: Applied Materials (AMAT) and KLA Corp. (KLAC) slipped roughly 1%, while ASML (ASML) and Lam Research (LRCX) were largely flat.
