Today’s Market Recap: Memory Chip Rout Deepens，SanDisk Tanks 11%，SK Hynix Breaks IPO Price，Nvidia Slides 5%
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U.S. indices finished mixed on Tuesday as semiconductor stocks retreated on reports of China’s advancements in lithography and chip production. Nvidia shares dropped 5% amid financing concerns, allowing Apple to reclaim the top spot by market capitalization. Meanwhile, the memory chip sector faced significant volatility, with SK Hynix and SanDisk posting sharp losses. Despite broader equity headwinds, the U.S. Dollar Index rebounded, while WTI crude plummeted 8%. While market sentiment reflects caution over AI infrastructure capital expenditure, analysts remain divided on whether these pullbacks represent a long-term buying opportunity for established AI sector leaders.
Tracking the Market Trend
TradingKey - The three major U.S. stock indices opened higher across the board on Monday, with the Nasdaq Composite Index rising as much as 1% during the session. However, driven by reports of a technological breakthrough that could accelerate the development of China’s chip industry, coupled with market concerns over NVIDIA’s rolling financing operations, the indices quickly turned lower in early trading.
At the close, the Dow Jones Industrial Average rose 0.51% to 52,210.08; the Nasdaq Composite Index fell 0.18% to 24,932.08; and the S&P 500 Index rose 0.02% to 7,413.18.
By sector, semiconductor stocks led the market lower. The Philadelphia Semiconductor Index (SOX) closed down about 2%. Among individual stocks, Nvidia (NVDA) plunged 5%, ASML (ASML) fell more than 5%. The memory chip sector performed particularly poorly: Micron Technology (MU) fell 2.19%; SK Hynix (SKHY) dropped more than 7%, falling below its IPO price; SanDisk (SNDK) plummeted 11%.
In the foreign exchange and cryptocurrency markets, the U.S. Dollar Index staged a “V-shaped” reversal during the session, rebounding more than 0.4% from its intraday low. Bitcoin (BTC) and Ethereum (ETH) both declined, each falling more than 2%.
In the commodities market, gold (XAU/USD) rose before retreating, closing with a modest gain of just 0.5% and failing to hold above $4,100. The crude oil market suffered a sharp decline, with WTI crude plunging about 8% to around $81; Brent crude also fell sharply but remained above $90.
Market Headline
Chinese DRAM manufacturers have sent shockwaves through the global memory chip market, causing related sectors on U.S. stock markets to plunge across the board on Monday. SanDisk fell more than 10% during intraday trading, with its market capitalization shrinking by approximately $170 billion over the past month; SK Hynix ADRs fell as much as 10% at one point, while Micron dropped more than 7%. However, most institutions believe that the technological lead held by Micron, SK Hynix, and Samsung in the AI memory sector is unlikely to be shaken in the short term, and some analysts view this pullback as a buying opportunity.
China has begun mass production of immersion DUV lithography systems, sparking market concerns about ASML’s monopoly. According to The Information, a Shanghai-based state-owned enterprise has started mass production of the equipment, with plans to produce five units this year and expand to 20 next year. Although still in the early stages, this development is seen as a potential alternative given that ASML’s exports of EUV and high-end DUV equipment to China are already restricted.
NVIDIA’s fundraising for expansion has sparked market concerns, with credit default swap spreads surging 14 basis points in a single day to a record high; the company’s stock closed down 5% on Monday. NVIDIA is embroiled in a $750 billion AI infrastructure investment, raising market concerns about its increasing financial risks; Apple, meanwhile, has gained favor with its restrained capital expenditure strategy, rising 24% year-to-date and closing up 1.2% on Monday. With a market capitalization of approximately $4.93 trillion, it has overtaken NVIDIA’s $4.78 trillion to reclaim the top spot in market capitalization.
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