US technology stocks fell further in Thursday’s premarket trading after Wednesday’s declines. Sentiment weakened amid concerns that higher financing costs could burden the substantial investment needed for artificial intelligence infrastructure.
Nebius Group led the premarket losses among the six companies, sliding 4.58%, followed by Micron Technology at 4.3% and Advanced Micro Devices at 3.65%. Oracle dropped 2.42%, while ASML Holding and Nvidia were down 2.18% and 1.93%, respectively.
The retreat followed a difficult Wednesday session. Nebius had lost 10.08%, ending at $186.01, and Oracle had finished at $130.55 after an 8.83% decline. AMD’s closing price of $570.82 reflected a 5.73% fall.
Micron ended Wednesday at $914.13, a loss of 4.08%. ASML finished at $1,650 after falling 3.94%, while Nvidia shed 3.16% to end the session at $221.30.
The U.S. stock markets settled lower on Wednesday as the Dow Jones Industrial Average dipped by 0.09% to 51,621.48. NASDAQ contracted by 1.88% to 26,692.86, and S&P 500 dropped by 1.11% to 7,718.94. VIX jumped by 10.48% to 16.87.
Meanwhile, Asian trading also saw sharp declines on Thursday. South Korea’s Kospi ended at 5,554.22, losing 7.57%. Within the country’s chip sector, SK Hynix fell 11.06% and Samsung Electronics dropped 9.48%.
Investor sentiment took a hit amid mounting concerns that elevated borrowing costs could jeopardize the substantial capital expenditures needed for artificial intelligence infrastructure. This unease was amplified following recent remarks from technology sector leaders, including top executives at Broadcom and Intel, who noted that securing funding may become a significant challenge for ongoing AI development efforts.
Analysts noted that the uplift in U.S. Treasury yields, now exceeding 5%, is drawing investor focus toward the financial health of firms investing in AI, although actual demand for computing power has not diminished. Some suggested the present pullback could represent a potential entry point for investors, stressing that a shift in demand would be the key indicator for a change in outlook.
In response to the rapid decline, South Korea’s market operator instituted a “sidecar” trading suspension after the Kospi index’s futures experienced sharp losses. This five-minute halt on program sell orders was triggered during what became the market’s longest losing streak since September 2024—a seven-session streak of declines.
A strategist at JPMorgan in Hong Kong, Mixo Das, observed that buying momentum in key names such as Samsung and SK Hynix had faded, and predicted that while near-term volatility is likely, valuations for AI-exposed stocks are expected to recover over the coming six to twelve months.
