US chip stocks fell on Thursday as concerns over inflation and rising debt costs increased. Investors worried that higher inflation could lead to expensive borrowing, especially for companies spending heavily on artificial intelligence (AI) infrastructure. The concerns deepened the ongoing sell-off in chip stocks.
Sandisk shares tumbled 6% on Thursday after falling 5% in the previous session. Sandisk makes flash memory products and has been the S&P 500’s top-performing stock in 2026.
The latest fall added to its losses from the previous trading session, according to Yahoo Finance.
Micron shares dropped 4%, while South Korean chipmaker SK Hynix also recorded a decline. However, its shares still fell 4% on Thursday as chip stocks continued to fall. CoreWeave shares fell as much as 7% on Thursday, extending a sharp decline from the previous session. The stock had already lost more than 16% on Wednesday.
It reported strong results as demand for AI chips remained high. Both companies faced further pressure following losses in the previous session.Investors were also worried about growing competition from Chinese chipmakers. This added to the fall in memory-chip stocks. Strong earnings and record profits at Taiwan Semiconductor Manufacturing Company (TSMC) failed to lift investor confidence. TSMC is the world’s largest chipmaker that makes chips for other companies. One reason for the fall was concern about the high cost of borrowing money for companies with large debts. Many companies are spending huge amounts of money to build the technology and computing systems needed for AI. The broader concern for chip companies is whether heavy investment in AI infrastructure can remain financially sustainable if borrowing becomes more expensive.
Investors are increasingly concerned about how these companies will manage their debt if borrowing costs remain high, according to Yahoo Finance. The latest fall reflected continued investor concerns about the company’s debt, higher bond yields and persistent inflation, according to Yahoo Finance. With inflation rising and bond yields putting pressure on debt-heavy companies, even strong earnings and demand for AI chips were not enough to lift several major semiconductor stocks on Thursday.
