Chip stocks retreat as AI safety concerns grow

Several AI-linked chip stocks sold off Monday as investors reacted to rising warnings from AI researchers about the risks of unchecked model development. Advanced Micro Devices fell 4.4%, Micron dropped 5.3%, and Intel declined 5.6% as shareholders reduced exposure to companies tied to the AI buildout.

Anthropic CEO Dario Amodei said AI could deliver major benefits, including curing diseases and creating economic abundance, but also raised concerns about dangers such as cyberattacks and bioterrorism. He called for the AI industry, regulators, and government leaders to establish universal safety standards and argued that model capabilities should advance more slowly so risk prevention can keep pace.

Support for stronger safeguards from leaders including Elon Musk and Sam Altman has added to investor concerns that a slower pace of AI development could soften chip demand. Micron could lose some pricing power if memory shortages ease, AMD could face pressure if expectations for rapid GPU sales growth weaken, and Intel could be hurt both in AI-focused CPUs and its push to become a domestic manufacturing partner for semiconductor designers.