Chip selloff reaches Wall Street as Broadcom CEO warns on AI money
Micron and other chipmakers fell for another day on CXMT competition worries and Broadcom's casino comment.
AI and chips · Tuesday, October 13, 2026 · 10:15 AM ET
Chip stocks kept sliding on Tuesday. AP reported that as of 9:35 AM ET the S&P 500 was down 0.1%, the Dow up 300 points, or 0.6%, and the Nasdaq composite down 0.4%, with strong profit reports from Goldman Sachs and UnitedHealth helping hold the market up. Before the open, Reuters had Micron down 2.8% and Western Digital, Seagate and Sandisk down 3.5% to 4.5%.
Where the selling started
The Guardian reports that chip shares fell after Broadcom chief executive Hock Tan compared many AI investors to casino gamblers, and after Chinese memory-chip maker CXMT said it had made good progress on a new DRAM architecture. The South China Morning Post had reported the CXMT progress on Monday. Investors worry it could challenge Samsung, SK Hynix and Micron, the biggest memory-chip makers (The Guardian). Samsung fell 7.4% in Seoul and SK Hynix 10%, and the Kospi dropped about 6% (The Guardian, AP). Read our earlier coverage: Asia chip rout and Toast & Tickers.
How long it has run
Bloomberg says an exchange-traded fund tracking chip stocks was headed for a sixth straight day of losses. Bloomberg quotes Bank J Safra Sarasin strategist Wolf von Rotberg saying that "the volatility in the tech trade makes a confirmation of hyperscaler capex guidance ever more important." Our own coverage of Monday's decline: stocks mixed in the afternoon as oil holds high.