As chip stocks recover before the opening bell on Tuesday, major US tech stocks and Indian IT American depositary reciepts (ADR) dipped following around a 7% surge in the last trading session.
During pre-market session on Tuesday, shares of Accenture declined 1.82% to $ 191.45, Salesforce fell 1.67% to $255.09, Cognizant dropped 1.4% to $63.2, while Alphabet slid 0.95% to $ 342.41. ADRs of Infosys tumbled 1.88% to $11.38 and Wipro slipped 3.37% to $1.72 by 7:48 am ET.
In contrast to tech stocks, semiconductor stocks such as SK Hynix, Intel, Nvidia, Micron, AMD and SanDisk traded in green, climbing up to more than 1% during early market trade following 7% slump on Monday.
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The diverging trend between tech and chip stocks come after a major announcement from Anthropic's Chief Executive Officer (CEO) Darius Amodei and OpenAI CEO Sam Altman announced plans to slow down the pace of artificial intelligence development with the aim to accommodate for safety protocols and frameworks.
On Sunday, US Senator Bernie Sanders urged US President Donald Trump and Chinese President Xi Jinping to pause the development of advanced artificial intelligence, including superintelligent AI. "Dario Amodei, Elon Musk and Sam Altman now agree that we must slow down the development of AI and 'pace the frontier.' That's a start, but it's not enough," Sanders wrote.
Following these developments, US tech stocks and Indian IT ADRs surged as much as 7% on Monday, with ADR for firms like Infosys and Wipro increased by 2% while shares of Cognizant, ServiceNow and Accenture increased by 4%.
Meanwhile, chip stocks such as SK Hynix Inc.'s declined of 7.38% to $176.05 on Monday, while Nvidia Corp was traded 4.18% lower at $209.17. Advanced Micro Devices Inc. (AMD) shares fell 5.75% to $486.46, while SanDisk Corp.'s stock dropped over 7%.
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