AI Stocks Slide on Micron Outlook, BofA Sees Visibility into 2028
AI-related stocks fell sharply on Tuesday, with the Nasdaq 100 down 2.6%, as a 10% sell-off in South Korean memory chip stocks spilled over and Micron's earnings setup disappointed. BofA remains positive on AI visibility through 2028.
AI-linked equities fell broadly on Tuesday, dragging the tech-heavy Nasdaq 100 down 2.6% at the time of writing. The decline was exacerbated by a 10% drop in South Korea's KOSPI index, triggered by sharp sell-offs in memory chip leaders SK Hynix and Samsung Electronics, which spilled over into US markets.
Micron Technology's earnings setup is seen as offering a lower bar, adding to the cautious tone toward semiconductor names. Meanwhile, Bank of America has reiterated a positive outlook for AI-related companies, citing strong visibility into 2028.
The divergence between near-term earnings concerns and longer-term optimism highlights the current tension in AI and chip stocks.
Source: FXStreet Forex News