'Slow AI development' calls drag New York semiconductor stocks down 5%
Calls to 'slow down AI development' shook New York tech stocks. The AI slowdown argument holds that the pace of AI development should be decelerated. On the 14th (local time), selling pressure on tech stocks spread across the New York market. The Philadelphia Semiconductor Index, composed of major U.S. semiconductor stocks, fell 646.02 points, or 5.46%, to 11,177.98 from the previous session. AI bellwether Nvidia dropped 3.53%, while Broadcom (-4.52%), Intel (-6.10%), AMD (-6.18%), Micron (-5.89%), and SK Hynix ADRs (-5.70%) all tumbled sharply together.
What chilled investor sentiment were calls for a slowdown from key figures in the AI industry. Dario Amodei, CEO of Anthropic, warned in a blog post on the 12th (local time) about the potential misuse of AI, urging a slowdown in model development to establish safeguards. SpaceX CEO Elon Musk agreed, saying "he's right."
Another factor added to the pressure on tech stocks: international oil prices and U.S. Treasury yields surged together. Brent crude futures, the global benchmark, rose more than 4% to as high as $109 per barrel, while West Texas Intermediate (WTI) futures also traded in the $104 range, up more than 4%. The yield on the 10-year U.S. Treasury note rose nearly 3 basis points in morning trading, surpassing 5% for the first time since October 2023 in about three years.
