Chip stocks plunge as Moonshot AI funding rumors spark market jitters

Chip stocks have recently seen a notable pullback. The Philadelphia Semiconductor Index fell by about 1.63%, and major AI chip leaders including Nvidia, AMD, and TSMC were generally under pressure. On the one hand, the market is digesting prior gains; on the other, it is watching whether AI capital expenditures will see any marginal changes.

Meanwhile, according to reports, Moonshot AI is advancing a new round of financing with a target size of about $1 billion. Some sources say that compared with OpenAI and Anthropic, the development of its Kimi 3 model may require higher compute resources. This has also prompted the market to re-examine the balance among AI companies’ cash burn, compute demand, and commercialization returns.

It is also worth noting that prior DeepSeek-related events have already made the market more cautious about AI model training costs and capital spending. If, going forward, AI companies continue to burn large amounts of money but commercialization fails to meet expectations, the chip sector may continue to face valuation volatility. $NVDA ‌$TSM ‌$AMD ‌