AI Faith Crumbles? Broadcom, Micron, AMD, Nvidia Tumble as Market Starts Questioning Jensen Huang

TradingKey - Jensen Huang announced that SK Hynix, Samsung Electronics, and Micron have received new production authorizations, yet AI stocks generally fell instead of rising.

During the pre-market session on June 5, Eastern Time, artificial intelligence (AI) concept stocks were sold off by Wall Street, experiencing a rare collective plunge. Among them, Micron ( MU) fell nearly 4%, while Qualcomm ( QCOM) , Intel ( INTC) and AMD all dropped more than 3%, Broadcom ( AVGO) and TSMC ( TSM) fell about 2%, and Nvidia ( NVDA) all dropped over 1%. Notably, AI concept stocks such as Broadcom, AMD, Micron, and Qualcomm had already experienced varying degrees of decline yesterday.

Micron stock price chart, source: TradingView

The decline in AI stocks occurred not only in the U.S. market but was reflected earlier today in the South Korean market. Today, South Korea's KOSPI index plummeted 7%; regarding individual stocks, SK Hynix cratered nearly 10% and Samsung Electronics fell over 6%, reflecting cooling investor enthusiasm for AI stocks.

More notably, Nvidia CEO Jensen Huang arrived in South Korea today for a visit and met with executives from Samsung Electronics, SK Hynix, and other firms. Huang also revealed that the three major memory chip manufacturers (SK Hynix, Samsung Electronics, and Micron Technology) have been approved to supply Nvidia with their most advanced high-bandwidth memory products. Normally, securing new business would be a positive development pushing share prices higher, yet they have paradoxically fallen instead of rising.

Earlier, at the Computex exhibition in Taipei, Nvidia CEO Jensen Huang addressed the AI bubble theory, stating, "Only crazy people would question the return on investment in AI, as the technology has already created trillions of dollars in value." Currently, it seems investors do not buy his rhetoric and are beginning to "vote with their chips" in support of the AI bubble theory—or at least they are becoming cautious.