Semiconductor stocks faced broad selling pressure as market participants weighed the impact of AI safety debates on near-term hardware spending and revenue guidance.
Micron fell 6%, the largest decline among the three, due to expectations of weaker demand for data centers used in AI training if development slows.
Nvidia shares fell 3% amid concerns that calls to slow AI development could reduce future spending on AI hardware.
Broadcom declined 5% as AI concerns added to caution over its revenue outlook, with Q4 revenue forecast slightly below expectations.
Nvidia, Micron, and Broadcom shares retreated Monday following industry calls to moderate the pace of AI development. Investors fear that a potential slowdown in model training could dampen demand for high-end hardware, overshadowing long-term growth projections for the sector.
Shares are under pressure due to concerns that calls from industry leaders to slow AI development could reduce immediate demand for hardware used in model training.