Chip Stocks Stumble Amid AI and Earnings Season Volatility

The Nasdaq is set for a lower opening due to declining chip stocks. Despite Samsung's earnings, Nvidia fell after China's DeepSeek announced its own AI chip. Investors are concerned about AI rally momentum and earnings season volatility. Meanwhile, SpaceX joins Nasdaq-100 amidst blue-chip index gains.

The Nasdaq is expected to open lower on Tuesday, driven by declining chip stocks as investors question the momentum of the AI-led rally despite Samsung's impressive earnings. A report about China's DeepSeek developing its own AI chip has also dampened sentiment.

Nvidia's shares fell 1.5% in premarket trading following news that the Chinese startup is creating its AI chip, potentially reducing reliance on Nvidia and Huawei chips. Additionally, memory chipmakers faced losses: Micron Technology dropped 4.7%, Western Digital fell 6.3%, and Sandisk lost 4.6%.

Despite Samsung Electronics reporting a 19-fold increase in second-quarter operating profit, its shares sank in South Korea. The results were strong but led to disappointment in the broader markets. The upcoming earnings season could bring more volatility, with concerns about the overbought AI sector affecting investor sentiment.