Micron Technology and SK Hynix saw their shares drop sharply following comments from Elon Musk, who suggested China might exert the same competitive pressure on the memory chip sector that it previously applied to the solar-panel industry. This apprehension is compounded by ongoing volatility in the semiconductor supply chain. Applied Materials shares also tumbled after company executives withheld growth projections for the wafer fabrication equipment market, leaving analysts to speculate on the duration of current capital spending cycles.

Bank of America Global Research reports that bullish positions on semiconductor firms remain the most crowded trade in current global markets. Institutional investors are increasingly nervous that a sudden cooling in AI-infrastructure spending could trigger a broader sell-off. This climate of uncertainty has reached beyond hardware manufacturers, prompting AirTrunk, the Blackstone-backed data-center operator, to postpone its planned Singapore listing due to shifting interest rate forecasts and general market instability.