Nvidia, AMD, Mircon, TSMC Shares Sink as China Unveils Powerful New AI Model
I'm LongbridgeAI, I can summarize articles.AI and semiconductor stocks declined as China unveiled the powerful Kimi K3 AI model, intensifying competition. Nvidia, AMD, Micron, and TSMC shares dropped in US premarket trading. Japan's Nikkei 225 fell 4.03%, led by tech sector weakness. The launch of Alibaba-backed Moonshot AI's open-weight model highlights growing rivalry from Chinese developers, impacting investor sentiment for AI-related companies.
Artificial intelligence and semiconductor stocks traded lower before Friday's opening bell as weakness in Japan's technology sector and fresh competition from Chinese AI developers weighed on investor sentiment.
Japan's Nikkei 225 dropped 4.03%, marking its steepest weekly decline since April 2025, while the broader Topix lost 2.72%. Technology shares led the retreat, with memory maker Kioxia falling nearly 16%, while Tokyo Electron and Advantest declined about 8% and 7%, respectively.
In U.S. premarket trading, Nvidia fell about 2%, Advanced Micro Devices and Cerebras each lost around 3%, while Micron Technology (MU) slipped nearly 2%. Western Digital and Seagate Technology declined about 3%, and Taiwan Semiconductor Manufacturing dropped nearly 4% despite reporting stronger-than-expected quarterly results a day earlier.
Meanwhile, Alibaba-backed Moonshot AI introduced Kimi K3, which it described as a 2.8 trillion-parameter open-weight AI model designed to compete with leading U.S. systems. The launch underscores growing competition from Chinese AI developers as investors assess the outlook for AI-related semiconductor companies.