The S&P 500 ended lower on Tuesday as losses in Micron Technology and other chipmakers weighed on growing doubts about the sustainability of Wall Street’s AI-driven rally. Chip stocks in Asia and the United States fell after memory chip giant Samsung Electronics’ blowout earnings report failed to satisfy investors with sky-high expectations.

Micron and SanDisk both fell, dragging the PHLX chip index lower. Adding to the worries of high-flying chipmakers, Reuters reported that Chinese startup DeepSeek is developing its own AI chip, which could reduce its reliance on Nvidia and Huawei chips.

According to preliminary data, the S&P 500 ended down 34.07 points, or 0.45%, at 7,503.36 points, while the Nasdaq Composite shed 310.06 points, or 1.19%, at 25,811.10. The Dow Jones Industrial Average fell 140.30 points, or 0.26%, to 52,915.61.

Tuesday’s chip sell-off marked the latest bout of volatility among memory chipmakers and other AI-related stocks as investors worry that sharp gains related to building AI data centers could make the stocks too expensive.

“Today’s story is the story of the last few weeks, and it’s the AI ​​buildout, the rotation after the rash of semis and memory runs. Expectations for these companies have become almost impossible,” said Zachary Hill, head of portfolio management at Horizon Investments in Charlotte, North Carolina. Another test of appetite for chip stocks began on Friday, when South Korean giant SK Hynix’s U.S. The listing begins trading on the Nasdaq. Elon Musk’s SpaceX fell on its first day of trading as part of the Nasdaq 100 index, after a wave of brokerages began coverage on the stock.

The Dow ended lower after touching an all-time high earlier in the session. Oil prices rose following reports of attacks on ships near the Strait of Hormuz. Fiserv rose after media reports that the firm was in talks with US banks including JP Morgan and Bank of America to sell its payments infrastructure business handling debit card transactions.

Watchers of the US Federal Reserve will get another glimpse of how new Chairman Kevin Warsh is running the central bank when he releases minutes of its latest meeting on Wednesday, the first of his tenure.