I'm LongbridgeAI, I can summarize articles.AI and memory chip stocks, including NVDA, AMD, Intel, Micron, and SNDK, fell for a third consecutive session. The sell-off was driven by a sharp decline in Japanese tech shares and increased competition from China's AI industry, highlighted by Alibaba-backed Moonshot's new open-weight model. Despite the downturn, Wall Street analysts maintain strong buy ratings for Nvidia and Micron, citing significant upside potential.
AI and memory chip stocks fell for a third straight session in Friday's pre-market trading as investors reacted to a sharp sell-off in Japanese technology shares and fresh competition from China's AI industry. The weakness spread across the semiconductor sector, pulling down major names such as Nvidia (NVDA), Advanced Micro Devices (AMD), Intel (INTC), Micron (MU), SanDisk (SNDK), and Taiwan Semiconductor (TSM).
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200% short exposure to NVDA with NVDSThe selling came after Japan's Nikkei 225 dropped more than 4%, marking its worst weekly decline since April 2025. Chip stocks led the losses in Japan. Memory maker Kioxia, chip equipment firm Tokyo Electron (TOELY), and chip test company Advantest (ATEYY) posted sharp losses. The sell-off then spread to U.S. chip stocks before the opening bell.
China's AI Push Adds More Pressure
Investor sentiment also took a hit after Alibaba-backed (BABA) AI startup Moonshot unveiled Kimi K3, which it called the world's largest open-weight AI model. The company said the model delivers performance close to leading U.S. AI systems.
The launch adds to signs that Chinese AI firms are catching up with U.S. rivals. Companies including Moonshot, Z.ai, and MiniMax (MNMXF) have released more powerful AI models at lower costs. That has raised fresh questions about competition in the AI market.
Memory Stocks Stay Under Pressure
Memory stocks also extended their recent losses. Micron slipped about 2% in pre-market trading, while Western Digital (WDC) and Seagate Technology (STX) each fell over 4%. SanDisk also traded lower.
The weakness followed recent declines in Samsung Electronics (SSNLF) and SK Hynix (HXSCL). The two memory makers had already weighed on sentiment across the memory-chip sector.
Wall Street's Take on These Chip Stocks
According to TipRanks' Stock Comparison Tool, Nvidia, Micron, SanDisk, and Advanced Micro Devices have Strong Buy consensus ratings, while Intel has a Hold rating.
Among these stocks, analysts see the biggest upside in Micron at 83.93%, followed by Nvidia at 49.44%. SanDisk offers 44.70% upside, while AMD and Intel have more modest upside potential of 8.06% and 12.69%, respectively.