Chip Stocks Tumble Amid Investor Doubts Over AI Growth

WHO:

Business Insider - CEO Elon Musk stated that SpaceX's first Starship launch since going public was scrubbed due to engine issues.

Inc - Investors are involved in the stock market activity regarding chip stocks.

Bloomberg Markets - Chinese startups are mentioned as contributors to the current market situation.

WHAT:

Yahoo Finance - SpaceX's stock price fell to about $133, marking a decline of 40% from its peak of $225 reached shortly after its IPO on June 12.

Business Insider - SpaceX's stock closed at $131.11, marking its first finish below the IPO price of $135, and fell by 5% on Friday.

Bloomberg Markets - A closely-watched index of semiconductor stocks has fallen into a bear market, unwinding a significant portion of the previous rally that saw the gauge more than double in just three months.

CNN - The Nasdaq dropped 1.5% following the announcement of a new AI model, Kimi K3, from Chinese company Moonshot, which is said to be nearing the performance of models like OpenAI’s ChatGPT and Anthropic’s Claude.

Bloomberg Markets - Global semiconductor stocks have shed $3.3 trillion in market value since June 22.

Bloomberg Markets - Taiwan Semiconductor Manufacturing Company reported a 77% year-over-year profit growth but warned of increased capital investments of upwards of $60 billion this year.

The Motley Fool - Micron has signed Strategic Customer Agreements to supply memory chips to seven "key Tier 1 suppliers" in the global automotive industry, including Qualcomm, Visteon, HARMAN, JOYNEXT, DENSO, Astemo, and Hyundai Mobis.

CNN - The S&P 500 fell 0.7%, and the Dow was down 60 points, or 0.1%, in response to the market's reaction to the AI developments.

Yahoo Finance - SpaceX's revenue jumped to $18.7 billion in 2025, a 33% increase compared to the previous year, but the company registered a loss of $4.9 billion last year.

Yahoo Finance - SpaceX raised more than $85 billion in its June 12 IPO, the largest public debut in history.

Business Insider - SpaceX's stock has lost about $1 trillion in market value since its peak on June 16, 2026.

Business Insider - SpaceX's stock closed at $131.11, marking its first finish below the IPO price of $135, and fell by 5% on Friday.

Yahoo Finance - SpaceX's stock price was trading below $125 just before midday ET on Friday.

Bloomberg Markets - The Philadelphia Semiconductor Index sank approximately 10% for the week, its largest weekly fall in over a year, and is now down about 20% from its late-June all-time high.

CNN - The Nasdaq dropped 1.5% following the announcement of the new AI model, Kimi K3, from Chinese company Moonshot, which is said to be nearing the performance of models like OpenAI’s ChatGPT and Anthropic’s Claude.

Yahoo Finance - SpaceX's stock price fell to about $133, marking a decline of 40% from its peak of $225 reached shortly after its IPO on June 12.

Bloomberg Markets - Global semiconductor stocks have shed $3.3 trillion in market value since June 22.

Bloomberg Markets - Taiwan Semiconductor Manufacturing Company reported a 77% year-over-year profit growth but warned of increased capital investments of upwards of $60 billion this year.

Business Insider - SpaceX's stock has lost about $1 trillion in market value since its peak on June 16, 2026.

Business Insider - SpaceX's stock closed at $131.11, marking its first finish below the IPO price of $135.

Yahoo Finance - SpaceX's stock price fell to about $132.75 before recovering to close above the IPO price.

Yahoo Finance - SpaceX's first Starship test flight since going public was scrubbed due to engine issues, with a targeted launch timing of "early next week."

Yahoo Finance - SpaceX raised more than $85 billion in its June 12 IPO, the largest public debut in history.

Yahoo Finance - SpaceX is expected to release its first quarterly report in August, which will coincide with the lifting of selling restrictions for 911.5 million shares.

Business Insider - SpaceX's stock closed at $131.11, marking its first finish below the IPO price of $135.

Yahoo Finance - Global semiconductor stocks have shed $3.3 trillion in market value since June 22.

CNN - The S&P 500 fell 0.7%, and the Dow was down 60 points, or 0.1%, in response to the market's reaction to the AI developments.

Yahoo Finance - SpaceX's stock price fell to about $133, marking a decline of 40% from its peak of $225 reached shortly after its IPO on June 12.

The Motley Fool - Micron's stock sold off for a second consecutive day, slipping 3.2% after Taiwan Semiconductor Manufacturing Company reported a 77% year-over-year profit growth but warned of increased capital investments of upwards of $60 billion this year.

Techmeme - US chip, memory, and storage stocks fell sharply, with Sandisk down 13%, Seagate 10%, Western Digital 9%, and Intel and Micron 6% each.

Yahoo Finance - SpaceX's stock price stood at about $133, slightly lower than the IPO price of $135, marking a decline of 40% from its peak after the IPO.

Yahoo Finance - SpaceX's revenue jumped to $18.7 billion in 2025, a 33% increase compared to the previous year, but the company registered a loss of $4.9 billion last year.

Inc - Chip stocks have experienced a drop despite record AI profits.

Bloomberg Markets - A new AI model from a Chinese startup is contributing to the selloff in tech stocks.

Bloomberg Markets - Investor sentiment on China technology hardware has reached its most bearish reading in over four years.

Bloomberg Markets - China’s artificial intelligence companies have seen profit gains exceeding 1000%, but this may not be enough to revive the rally in tech stocks.

WHERE:

Bloomberg Markets - The focus is on China technology hardware and AI companies.

WHEN:

Business Insider - SpaceX's next targeted launch timing for the Starship is "early next week."

WHY:

Bloomberg Markets - Concerns about massive AI spending and the potential to create an “AI bubble” have fueled weeks of choppy tech stock trading.

Business Insider - The drop in SpaceX's stock price is attributed to a loss of approximately $320 billion in market value since its IPO day.

CNN - Concerns about whether investors were overpaying for AI and tech stocks resurfaced, exacerbated by the announcement of the new AI model from Moonshot.

Yahoo Finance - Analysts attributed SpaceX's stock drop to declining demand as investors reassess the company's financial performance post-IPO.

Bloomberg Markets - Elevated expectations following a months-long rally are raising the bar for tech stocks to climb further.

HOW:

Yahoo Finance - The decline in semiconductor stocks is linked to rising costs associated with artificial intelligence infrastructure and increased capital expenditures by Taiwan Semiconductor Manufacturing Company.

CNN - The announcement of Kimi K3, the world’s largest open-source model, has raised concerns for US AI companies that charge subscriptions for access to their closed-source models, potentially impacting chipmakers reliant on AI spending.

The Motley Fool - Micron has signed Strategic Customer Agreements with seven "key Tier 1 suppliers" in the global automotive industry, providing certainty regarding future orders and pricing for its automotive chips.

Bloomberg Markets - The selloff in tech stocks is driven by doubts over the sustainability of AI growth and the performance of chip stocks.

(UPDATED July 18, 2026 07:25 UTC)

SpaceX's stock price has fallen to around $133, marking a significant decline of 40% from its peak of $225 shortly after its historic IPO on June 12, which raised over $85 billion. In addition, the stock closed at $131.11, its first finish below the IPO price of $135, and has lost about $1 trillion in market value since its peak on June 16, 2026. Meanwhile, a closely-watched index of semiconductor stocks has entered a bear market, contributing to a loss of $3.3 trillion in global market value since June 22.

(UPDATED July 17, 2026 23:12 UTC)

SpaceX's stock closed at $131.11, marking its first finish below the IPO price of $135, and it fell by 5% on Friday, trading below $125 just before midday ET. Meanwhile, the Philadelphia Semiconductor Index experienced its largest weekly decline in over a year, sinking approximately 10% and now sitting about 20% down from its late-June all-time high. The Nasdaq also dropped 1.5% following the announcement of a new AI model from Chinese company Moonshot, which has raised concerns about massive AI spending and the potential for an "AI bubble," contributing to weeks of volatile tech stock trading.

(UPDATED July 17, 2026 22:16 UTC)

SpaceX's stock price has dropped to about $133, reflecting a significant decline of 40% from its peak of $225 shortly after its IPO on June 12. Meanwhile, a key index of semiconductor stocks has entered a bear market, losing a staggering $3.3 trillion in market value since June 22, as rising costs tied to artificial intelligence infrastructure and increased capital investments by Taiwan Semiconductor Manufacturing Company weigh heavily on the sector. Despite reporting a remarkable 77% year-over-year profit growth, Taiwan Semiconductor has cautioned that it will need to invest upwards of $60 billion this year.

(UPDATED July 17, 2026 18:24 UTC)

SpaceX's stock has experienced a significant decline, losing about $1 trillion in market value since its peak on June 16, 2026, and it closed at $131.11, marking its first finish below the IPO price of $135. The company's first Starship test flight since going public was scrubbed due to engine issues, with a targeted launch timing of early next week, and it raised over $85 billion in its record-setting IPO on June 12. Looking ahead, SpaceX is expected to release its first quarterly report in August, which will coincide with the lifting of selling restrictions for 911.5 million shares.

(UPDATED July 17, 2026 16:21 UTC)

SpaceX's first Starship launch since going public was scrubbed due to engine issues, according to CEO Elon Musk, and the company's stock closed at $131.11, marking its first finish below the IPO price of $135. The drop in SpaceX's stock price is attributed to a loss of approximately $320 billion in market value since its IPO day, while global semiconductor stocks have shed $3.3 trillion in market value since June 22, linked to rising costs associated with artificial intelligence infrastructure. SpaceX's next targeted launch timing for the Starship is set for "early next week."

(UPDATED July 17, 2026 15:24 UTC)

The Nasdaq dropped one and a half percent following the announcement of a new AI model, Kimi K3, from the Chinese company Moonshot, which is approaching the performance of leading models like OpenAI’s ChatGPT and Anthropic’s Claude. In response to these developments, the S&P 500 fell by seven-tenths of a percent, while the Dow decreased by 60 points, or one-tenth of a percent. Additionally, a key index of semiconductor stocks has entered a bear market, reversing much of the significant rally that had seen the gauge more than double in just three months.

(UPDATED July 17, 2026 14:27 UTC)

SpaceX's stock price has fallen to about $133, a significant decline of 40% from its peak of $225 shortly after its IPO on June 12, as analysts point to declining demand and a reassessment of the company's financial performance. Meanwhile, Micron's stock has also taken a hit, slipping 3.2% for the second consecutive day, despite Taiwan Semiconductor Manufacturing Company reporting impressive profit growth of 77% year-over-year, while cautioning about increased capital investments. On a positive note, Micron has secured Strategic Customer Agreements with seven key Tier 1 suppliers in the global automotive industry, which should provide more certainty regarding future orders and pricing for its automotive chips.

(UPDATED July 17, 2026 13:25 UTC)

U.S. chip, memory, and storage stocks experienced a significant decline, with Sandisk dropping thirteen percent, Seagate ten percent, and Western Digital nine percent, while Intel and Micron both fell six percent. Meanwhile, SpaceX's stock price is currently around $133, which is slightly below its IPO price of $135 and represents a forty percent decrease from its peak following the IPO, despite the company reporting a revenue increase to $18.7 billion in 2025. In a positive development, Micron has secured Strategic Customer Agreements to supply memory chips to seven major Tier 1 suppliers in the global automotive sector, including Qualcomm and Hyundai Mobis.

(UPDATED July 17, 2026 12:20 UTC)

Chip stocks are facing a significant drop despite record profits in the AI sector, as investor sentiment towards Chinese technology hardware has reached its most bearish level in over four years. A new AI model from a Chinese startup is contributing to the selloff, with concerns growing over the sustainability of AI growth and the performance of chip stocks. While China's artificial intelligence companies have reported profit gains exceeding one thousand percent, this surge may not be enough to revive the rally in tech stocks.