Chip stocks fell more than 7%, with SanDisk, Intel, Micron and AMD trading lower on investor concerns about oversupply, according to NDTV Profit.

Shares of semiconductor companies, including Micron, SK Hynix, SanDisk Corp., Advanced Micro Devices (AMD) and Nvidia, fell more than 7% at the opening bell in a broad selloff. Investors are increasingly concerned about an oversupply of chips anticipated to take place in 2029, as well as rising borrowing costs for AI companies.

Micron opened down 4.57% at $872.34 per share, while SK Hynix fell 4.04% to $141.59 after markets opened. AMD was down 4.44% at $545.47 minutes into trading, and SanDisk fell 7.27% to $1,301.33. Nvidia started the session down 2.63% at $215.49, and Intel traded 4.87% lower at $93.34 after the opening bell.

Wall Street traded mixed on Thursday as concerns over heavy artificial intelligence spending and a hotter-than-expected inflation reading weighed on technology stocks. The Dow Jones Industrial Average advanced, supported by gains in non-tech shares, while the S&P 500 and Nasdaq Composite remained under pressure.

At 9:32 a.m. EDT, the Dow Jones Industrial Average was up 301.41 points, or 0.58%, at 51,922.89. The S&P 500 fell 36.01 points, or 0.47%, to 7,682.93, and the Nasdaq Composite dropped 316.005 points, or 1.18%, to 26,376.863.

The divergence reflected growing investor caution about the returns from artificial intelligence investments, particularly as companies continue to spend heavily on computing infrastructure and chip capacity. Technology stocks came under renewed selling pressure as investors grew increasingly concerned about the scale of borrowing required to finance AI infrastructure expansion.

Other factors weighing on semiconductor share prices include investor caution about the cyclical peak in memory pricing. Prominent investors such as Ray Dalio have predicted that the AI industry is nearing a "classic bubble" that is close to bursting, citing climbing interest rates and the need for liquidity. Dalio said a large amount of debt was being taken on to fund AI endeavours at the Forbes Global CEO Conference in Singapore on Wednesday.