Chip Stocks Tank as AI Industry Seeks Brakes

The three major US stock indexes, the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average, fell on Friday due to a combination of factors.

Nvidia, a leading chipmaker, was hit hard by the decline in its parent index, with a 2.8% drop. Other semiconductor stocks, Micron Technology and SK Hynix, also suffered significant losses, falling by 5.6% and 7.4%, respectively.

The decline in chip stocks can be attributed to concerns raised by Anthropic CEO Dario Amodei, who called for a slowdown in AI development in an essay published on Saturday. OpenAI's Sam Altman and Elon Musk agreed with Amodei's assessment.