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US Chip Stocks Crash 10% After Unverified China Tool Report

7/28/2026

33 6 Full Breakdown

Summary

Chip Stocks Plummet

U.S. chip stocks sold off sharply on Tuesday, sending the Nasdaq-100 more than 10% below its recent high.
Sandisk, Western Digital, Seagate, Micron and AMD each fell about 10% with Dell dropping 13%.
The decline followed an unverified report that a Chinese state-backed firm began mass production of domestic chip-making tools.
Nvidia fell 5% to under $200 after talks of a $250 billion OpenAI datacenter project, with its CDS spread spiking.

Summary

MAS Warns AI

The Monetary Authority of Singapore warned that a sharp AI-investment retrenchment could weaken global growth via lower business investment, semiconductor demand and wealth effects.
CXMT’s $8.6 billion IPO made it China’s largest listed group by market value, with shares soaring 466% in Shanghai.
Cameron Systermans of Mercer Investments said CXMT lags South Korean rivals in high-bandwidth memory, limiting AI-chip impact.

History

Historical Context

After the Commerce Department added SMIC to the Entity List in 2018—a list that grew from roughly 700 entries in early 2017 to almost 1,400 by late 2020—the firm pledged $2 billion for domestic lithography, yet its capacity stayed about 30 % below Taiwan’s TSMC by 2022. The move prompted China’s 2020 “unreliable entities” law and a record-breaking CXMT IPO.

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Chip Stocks Plummet

U.S. chip stocks sold off sharply on Tuesday, sending the Nasdaq-100 more than 10% below its recent high.
Sandisk, Western Digital, Seagate, Micron and AMD each fell about 10% with Dell dropping 13%.
The decline followed an unverified report that a Chinese state-backed firm began mass production of domestic chip-making tools.
Nvidia fell 5% to under $200 after talks of a $250 billion OpenAI datacenter project, with its CDS spread spiking.

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