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AI Spending Woes Sink Chip Stocks Globally
28 Jul
Summary
- Global semiconductor stocks declined amid AI spending return concerns.
- Micron Technology and SK Hynix saw significant pre-market drops.
- Central bank policy decisions and tech earnings loom this week.
US stock futures indicated a weaker opening on Tuesday, July 28, 2026, as global semiconductor stocks faced renewed selling pressure. Investor concerns are mounting over the return on billions invested in artificial intelligence (AI) spending. This sentiment is amplified by upcoming central bank policy decisions from the Federal Reserve, Bank of Japan, and Bank of England.
Micron Technology, Marvell Technology, and AMD saw notable declines in pre-market trading. In South Korea, SK Hynix tumbled significantly, with its American depositary receipts hitting a record low. Samsung Electronics also experienced a substantial drop, fueled by worries about circular funding practices and heightened competition from Chinese chipmakers.
Investors are seeking tangible evidence that major AI spenders can generate substantial returns from their technology investments. Analysts note growing questions about the sustainability of current AI spending levels and increasing uncertainty from Chinese chipmaker competition. Geopolitical tensions in the Middle East have eased slightly following US-Iran diplomatic talks, though the situation remains elevated.
The US Federal Reserve is widely expected to maintain current interest rates this week, though markets are pricing in a potential cut in September. Oil prices have fluctuated amid concerns over maritime transit in the Strait of Hormuz.
