Semiconductor stocks tumbled in pre-market trading Monday after top artificial intelligence executives urged a slower pace for frontier AI development, triggering a broad risk-off move across tech and memory-chip names. Micron Technology (MU) dropped 5.2% to $924.90, leaving it about 26% below its 52-week high of $1,255, while Advanced Micro Devices (AMD) slid 5.6% to $487.07.
The selling was sparked by weekend commentary from Anthropic CEO Dario Amodei, OpenAI CEO Sam Altman, and Elon Musk, all of whom supported slower development of advanced AI models. Investors interpreted the remarks as a potential brake on the aggressive data center and AI infrastructure spending that has powered demand for high-bandwidth memory, NAND flash, and AI accelerators.
The pressure extended beyond U.S. markets. SK Hynix fell more than 6%, while SanDisk and Western Digital each lost more than 5% pre-market. South Korea’s KOSPI dropped over 3% as semiconductor names led the decline, and the PHLX Semiconductor Index posted steep multi-day losses. The Nasdaq Composite fell 1.8%, the S&P 500 declined 0.8%, and the Dow Jones slipped 0.3%.
Macro conditions added to the selling. Brent crude moved above $100 a barrel amid Middle East energy infrastructure disruptions, the 10-year Treasury yield approached 5%, and hotter-than-expected core inflation data raised concerns ahead of the September 15-16 FOMC meeting. The Trump administration is also considering semiconductor tariffs that could extend to servers and laptops, which technology companies warn may raise AI infrastructure costs.
Micron faces additional legal uncertainty from a Netlist patent lawsuit targeting DDR5 products, and its next earnings report is due September 30. AMD’s data center business remains a key growth driver, but shrinking gaming and semi-custom revenues leave it more exposed if AI spending slows. AMD shares are still up about 141% year-to-date, with a market capitalization near $842.6 billion.
