Nasdaq slips as AI-linked stocks Micron, Intel and Sandisk fall about 2%

Micron $MU Technology, Intel $INTC and Sandisk stock each fell about 2% in early trading on Tuesday as AI-linked names came under selling pressure and the Nasdaq $NDAQ Composite slipped.

The Nasdaq was down between 0.4% and 0.5%, and the S&P 500 was down between 0.1% and 0.2%. The Dow Jones Industrial Average traded between flat and up 0.3%. Seagate $STX Technology and Advanced Micro Devices each fell more than 1%, as did the VanEck Semiconductor ETF (SMH). CoreWeave stock dropped more than 3%.

South Korean AI firm Elice shed more than 30% of its value overnight as its shares began trading publicly in Seoul. Asian markets declined after the debut. In South Korea, the Kospi dropped 3.73%, while Japan's Nikkei 225 retreated 1.3% and Australia's S&P/ASX 200 ended 0.33% lower at 8,816.9. Brent crude rose past $110 per barrel.

Investors have grown uneasy over whether the AI trade can last, with mounting worries about borrowing and weakening demand, according to CNBC. Investors are taking a hard look at how much debt is paying for CoreWeave's build-out of data centers, according to The Wall Street Journal.

CoreWeave stock fell more than 25% last week. It attempted a rebound on Monday after Goldman Sachs $GS raised its rating to buy, but the early advance evaporated and shares ended the session in the red, according to CNBC.

Tech stocks had rebounded on Monday. The S&P 500 was up 0.4% over the regular session, and the Nasdaq Composite finished ahead by more than 1%. Nvidia $NVDA stock was up 1.4%, while Tesla $TSLA shares surged 3.8% and Alphabet $GOOGL moved roughly 1% higher.

The Monday rebound followed a selloff last week that spread to the wider market amid worries that companies were taking on excessive debt to fund AI build-outs, according to CNBC. The Monday gains snapped a weeklong losing streak for tech stocks.

SpaceX, Netflix $NFLX and United Airlines are due to report earnings, according to The Wall Street Journal. Investors are looking to SpaceX’s second report since its public listing for details on how its AI business is performing and how much it is spending, the Journal said.