Wall Street indices were split at open on Tuesday, as S&P 500 and Nasdaq edged lower after semiconductors took a hit and Dow Jones remained unaffected in the green due to low tech exposure.
S&P 500 opened 0.10% lower at 7,526.74, Nasdaq was down 0.5% to 25,967.17, whereas Dow Jones Industrial Average geared up for a new record after opening 0.33% higher at 53,220.77.
Major semiconductor players like Micron Technology Inc., Advanced Micro Devices Inc., and Intel Corp sank up to 8% after worries surrounding Samsung's AI capex spooked investors.
Micron and AMD sank over 7% to $912.60 and $509.61. Intel plunged nearly 9% to $113.05, and Jensen Huang's Nvidia Corp slumped 2% to $191.44.
Despite Samsung estimating a 1800% profit jump going ahead, investors scepticism around whether that growth would be able to justify sky-high capex on data centres has dragged other AI-linked giants.
Growing competition in south-east Asia is also threatening US-based chipmakers. Reports have emerged indicating that Chinese startup DeepSeek is manufacturing its own AI chips.
Separately, Elon Musk's SpaceX, which was included in the Nasdaq 100 index today, failed to excite traders and fell 4% to $154.32 within minutes of the opening bell.
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