Major US chip stocks came under renewed selling pressure on Monday, September 14, following a brief rally in the previous session, as leading artificial intelligence companies raised concerns over the rapid advancement of the technology.
Nvidia, which has been at the forefront of the AI-led rally, saw its shares fall 4.3% to the day’s low of $209. Broadcom, Advanced Micro Devices, and Intel each declined 5%, 6.5% and 8% while Marvell Technology shed 9.5%. Hyperscalers such as Amazon and Tesla also dropped more than 2% each.
The weakness dragged the Nasdaq Composite down 1.7% to the day’s low of 28,867, while the S&P 500 and Dow Jones Industrial Average fell 0.6% and 0.3%, respectively.
AI slowdown concerns add to Fed jitters
Anthropic CEO Dario Amodei called for a slowdown in the development of advanced AI capabilities, with other major technology figures backing the proposal. The latest warnings have raised concerns among investors that a slower pace of AI development could translate into weaker corporate spending and challenge earnings expectations across the AI supply chain.
Adding to the cautious mood, the weakness in technology stocks also came ahead of the US Federal Reserve’s policy meeting, with markets expecting a rate hike after more than three years as inflation has remained above the central bank’s 2% target for over five years.
The sell-off followed comments from Anthropic Chief Executive Officer Dario Amodei on Saturday that the company would introduce additional safeguards, including independent third-party evaluations, and urged the broader industry to slow the development of its most advanced models. OpenAI CEO Sam Altman backed the proposal, while xAI’s Elon Musk said, “Dario is right.”
Meanwhile, OpenAI CEO Sam Altman said his company would not go public this year, citing the need to focus on safety. In an interview with Fortune published on Saturday, Altman said the AI firm would not launch an initial public offering this year as it focuses on safety.
OpenAI and Anthropic are private companies, but both are widely expected to eventually go public.
US, China take different views on calls to slow AI development
China pushed back against calls to slow the development of artificial intelligence, dismissing concerns over the pace of AI advancement as “fearmongering” and warning that confrontation and competition could disrupt global AI governance.
US President Donald Trump also downplayed growing concerns over AI risks, raising questions over how committed industry leaders will be to slowing the development of their most advanced—and lucrative—models amid intense competition from Chinese rivals.
The AI theme has played a central role in driving US stock markets to multiple record highs this year, helping offset concerns over rising crude oil prices and ongoing trade tensions.
Strong second-quarter results from major technology companies also broadly met Wall Street expectations, while the companies announced billions of dollars in capital expenditure to build AI infrastructure.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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