The AI trade hit another speed bump on Wednesday after President Donald Trump signaled the cease-fire between the U.S. and Iran may be done, reviving investors' worst fears about the Middle East.

"To me, I think it's over. I don't want to deal with them anymore," Trump said at the North Atlantic Treaty Organization's $(NATO)$ summit in Ankara, Turkey.

There's no direct link between the war and AI, but investors have seemingly been looking for excuses to sell high-flyers lately following a stellar rally over the first half of 2026.

That may explain why AI stocks were tumbling on Wednesday. Memory-chip maker Micron Technology dropped 4.1%, chip manufacturer Intel fell 3.8%, and flash memory product supplier Sandisk slumped 4.3%.

Glassmaker Corning, chips and networking company Marvell Technology, and hard disk drive maker Western Digital were also falling ahead of the opening bell.

These stocks were also making moves in premarket trading:

Alibaba jumped 9.9%. The Chinese online retailer briefed analysts on Wednesday that its overall profit held steady over the June quarter, local outlet Jiemian News reported. Alibaba didn't respond to a request for comment from Barron's.

Oil stocks surged after Trump's comments drove up oil prices. Chevron gained 2.6%, Exxon Mobil added 2.7%, and Occidental Petroleum advanced 3.9%.

Delta Air Lines sank 2.9% and United Airlines declined 3.4% as investors fretted that a potential end to the cease-fire would drive up fuel costs.

(END) Dow Jones Newswires