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Semiconductor index down over 5%... Meta and Alphabet strong on expectations of eased cost burden
As the so-called 'AI pace adjustment theory,' which argues for slowing down the development of artificial intelligence (AI) technology, gained prominence, selling pressure spread across the New York stock market on the 14th (local time), centering on AI semiconductor stocks.
On this day, the Philadelphia Semiconductor Index, composed of major US semiconductor stocks, closed at 11,131.28, down 692.72 points (5.86%) from the previous trading day.
While Nvidia, a leading AI and semiconductor stock, fell by 3.36%, major semiconductor stocks such as Broadcom (-4.77%), Intel (-5.59%), AMD (-4.40%), Micron (-5.25%), and SK Hynix ADR (-7.60%) all experienced significant declines.
Semiconductor design company Marvell Technology (-7.32%), and semiconductor equipment companies Lam Research (-8.29%) and ASML (-7.25%) also saw large drops.
The fact that key figures in the AI industry supported the argument that it is necessary to slow down the development of cutting-edge AI systems dampened investor sentiment.
Dario Amodei, CEO of Anthropic, warned of the potential for AI misuse in a blog post on the 12th (local time), urging a slowdown in model development to put safety measures in place. Elon Musk, CEO of SpaceX, responded by saying, "He is right."
Microsoft (MS) AI researchers also unveiled new AI development guidelines on the same day, centered on the principle that "people are more important than AI."
Matt Maley of US financial firm Miller Tabak commented, "If the recent movements delay the realization of AI investment returns, it is natural for investors' enthusiasm to cool down."
On the other hand, some large tech stocks showed strength on expectations that the burden of massive AI investment could decrease.
Meta, the operator of Facebook and Instagram, and Google's parent company Alphabet rose by 2.71% and 3.22%, respectively.
The stock prices of these companies had been pressured by concerns that capital expenditure burdens would increase as they poured massive funds into data centers and semiconductors to avoid falling behind in the AI competition.
MarketWatch, a market-specialized media outlet, analyzed that if the pace of AI development slows down, Meta and Alphabet's AI-related investment burden could decrease, while the possibility of reduced AI semiconductor spending by these companies could act as downward pressure on semiconductor stocks.
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