Semiconductor stocks and major indices fell sharply after AI industry leaders proposed a coordinated development slowdown, prompting a market rotation from hardware to enterprise software.
SoftBank plunged more than 10 % after OpenAI CEO disclosed no 2026 IPO due to safety concerns.
Marvell Technology shares dropped over 6% amid broad AI slowdown fears.
Intl fell roughly 7 % as semiconductor stocks sold off on AI safety concerns.
Micron declined about 6 % following the AI industry slowdown call.
SK Hynix fell over 6 % amid Asian tech selloff triggered by AI slowdown essay.
ASML lost up to6 % as European chip equipment makers were hammered.
Infineon dropped more than 7 % as AI slowdown fears hit semiconductor stocks.
Nvidia slid over 4 % on fears that AI model development could slow.
Samsung Electronics dropped more than 4 % as AI safety worries spread.
CrowdStrike rallied sharply amid rotation from AI hardware to SaaS on slowdown fears.
ServiceNow shares rose as investors rotated into enterprise software.
Aobe rallied on rotation trade favoring recurring-revenue SaaS over AI hardware.
Nasdaq-100 Index fell 1 .6 % on Monday amid AI slowdown panic.
South Korea's Kospi index declined 3 .3 % due to heavy selling in chipmakers.
Global markets retreated as major AI CEOs, including Anthropic's Dario Amodei, called for a deliberate slowdown in frontier model development due to safety concerns. The proposal, backed by leaders at Microsoft and OpenAI, triggered a sharp selloff in semiconductor stocks and hardware-heavy indices, while investors rotated capital into enterprise SaaS firms.
Industry leaders cite significant safety concerns, including the potential for AI models to act autonomously or cause catastrophic risks, and are proposing independent third-party evaluations to manage these dangers.
The market reacted negatively, with significant declines in semiconductor and hardware-related stocks, while enterprise software companies experienced a rally as investors rotated their portfolios.