Chip Stocks Slide on China Memory Fears and Broadcom CEO Comments; Super Micro Dips

Semiconductor shares fell for a second day Tuesday as investors weighed competition from China's memory maker CXMT and comments from Broadcom CEO Hock Tan that were read as a warning about speculative AI investing. Micron dropped roughly 4% to 5%, SK Hynix fell 4.3% and Samsung slid as much as 7.4% in early Korean trading.

In the U.S., Western Digital and Seagate each fell more than 7% in premarket trading after UBS trimmed its Western Digital price target to $470 from $525. Super Micro Computer, a Dyatome Capital holding, slipped about 2.3% to around $39 on lighter-than-average volume, staying just above its 50-day moving average.

The pullback leaves technology as one of the weakest sectors on the day, even as the Nasdaq finished only 0.15% lower. Analysts remain split on Super Micro, with a consensus rating of Hold and an average price target near $43.