AI Spending Sustainability Fears Trigger Chip Selloff: Nasdaq Futures Plunge

Nasdaq 100 E-Mini futures are retreating as investors flee chipmakers, questioning the long-term viability of the massive artificial intelligence capital expenditure boom.

The Semiconductor Exodus

Investors are rapidly ditching chipmakers amid mounting doubts over when hundreds of billions of dollars in AI infrastructure spending will translate into tangible returns. This selloff has evolved into a broader global contagion:

■September Nasdaq 100 E-Mini futures fell -1.07% in early trading.

■Sandisk (SNDK) led the losers in the S&P 500 and Nasdaq 100, tumbling over -11%.

■Advanced Micro Devices (AMD) slid more than -5%, exacerbating the tech sector's downward pressure.

■Major players like Micron Technology slumped in pre-market trading.

Contagion Across Asian Markets

The collapse in semiconductor stocks triggered a massive ripple effect across technology-heavy Asian markets, signaling a swift reduction in global risk appetite:

■South Korea's Kospi index plummeted by more than -10%.

■Japan's Nikkei Stock Average dropped approximately -4%.

China Competition and Circular Financing Fears

Two critical factors are intensifying the pressure on the sector: China's technological advancement and concerns regarding the financial structures of industry giants:

■The blockbuster debut of Chinese memory chipmaker CXMT fueled fears of intensified competition.

■Reports that a Chinese state-backed firm has begun mass-producing immersion deep-ultraviolet lithography machines have rattled markets.

■Nvidia's $750 billion in AI infrastructure deals have renewed concerns regarding "circular financing" within the sector.

Energy Slump and Macroeconomic Outlook

Alongside the tech turbulence, commodity markets are softening while investors await pivotal central bank decisions:

■WTI crude prices dropped more than -2% as hostilities between the U.S. and Iran entered a pause.

■Market attention is now shifting toward the upcoming Federal Reserve (Fed) policy meeting and a heavy slate of corporate earnings reports.

The AI ecosystem is transitioning from a "growth-at-any-cost" phase to a "prove-the-returns" phase. The aggressive selloff in semiconductor stocks is a clear signal of a shift from risk-on to risk-off positioning by hedge funds. Furthermore, China's rapid progress in lithography technology is likely to bake a permanent geopolitical risk premium into semiconductor valuations.