Tech Down on AI Fears — Tech Roundup

Shares of technology companies slid as fears about the sustainability of an artificial-intelligence boom intensified after an unprecedented plunge for Korean memory-chip maker SK Hynix.

Taiwan Semiconductor Manufacturing fell even after the semiconductor fabrication firm posted a 68% increase in June revenue to $13.8 billion.

One strategist said investors were trying to ascertain who the winners and losers will be during the AI transformation of the global economy.

There's a risk red-hot AI demand for computer chips causes problems for other corners of the tech market, said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.

"With regular consumer electronics, it's hard for them not to have higher costs," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. "Is that a sign we're going to have persistently high inflation because of these higher [chip] costs?"

The PHLX "SOX" Semiconductor Sector index fell by more than 5%. Shares of SK Hynix's U.S. peers such as Micron tumbled.

Facebook owner Meta Platforms scaled up the size of its massive data-center project in Northeast Louisiana to 5 gigawatts of compute capacity and said it would now cost more than $50 billion.

Intel plans to invest 5 billion euro to expand its manufacturing site in Ireland, part of the company's latest effort to meet growing demand for AI and high-performance chips.

European authorities sanctioned Russian intelligence units and hackers on Monday, accusing them of a 15-year campaign targeting governments and critical infrastructure across the continent.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

July 13, 2026 17:56 ET (21:56 GMT)