Chip, Cloud-Computing Stocks Stage Relief Rally Premarket After Asia Rout

Dow Jones
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Artificial-intelligence stocks regained some ground in U.S. premarket trading after a rout in Asian markets, as investors weighed concerns a Democratic sweep in the midterm elections could slow AI infrastructure investment.

Nasdaq futures rose 1.5% after the index suffered its worst day since April 2025 on Thursday.

Investors dumped AI stocks on concerns that Democrat policymakers could block data-center projects across the U.S. amid growing voter opposition to their construction.

"Financial markets are undergoing an aggressive recalibration of structural AI capex assumptions," Tickmill Group strategist Patrick Munnelly said.

Chip makers that plunged in the previous session recovered some ground in premarket trading, with Micron Technology and SanDisk up around 9% and 10%, respectively, while Intel jumped 5%. Marvell, AMD and ARM gained between 7% and 8.5%.

Cloud-computing stocks also rallied. Astera Labs rose nearly 9% in premarket trading, while CoreWeave and Oracle gained 7.8% and 3.3%, respectively

European AI-linked stocks, which have fallen sharply since the midterms, also staged a modest recovery Friday. ASML--Europe's most valuable listed company--gained 3.2%, only partially recapturing the 6.5% it lost Thursday.

Signs of recovery in the U.S. and Europe came after investors battered Asian chip stocks Friday. The South Korean Kospi closed over 6% lower for its worst day since 2025, while Japan's Nikkei 225 neared correction territory. Memory-chip makers Samsung Electronics and SK Hynix fell over 6% and 10%, respectively.

Asian markets were catching up on Thursday's U.S. selloff, in which a gauge of chip stocks represented by the Philadelphia Semiconductor Index suffered its worst day since the pandemic.

 
 

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