Global semiconductor stocks declined sharply on July 28, 2026, amid growing concerns over excessive equity exposure and rising corporate debt tied to the rapid expansion of AI infrastructure. A report revealed that a Chinese state-affiliated firm has started mass production of immersion deep-ultraviolet lithography machines, raising fears of increased competition in advanced chip manufacturing. This development intensified sell-offs in the tech sector, overshadowing a 2% drop in Brent crude oil to $86.50 per barrel, which continued its third consecutive day of losses.
President Donald Trump announced ongoing discussions between the US and Iran aimed at resolving the Middle East conflict, sparking optimism about potential supply stability. However, Iran denied formal negotiations, leaving market sentiment uncertain. The combination of tech sector volatility and shifting geopolitical dynamics contributed to investor unease, with Nasdaq futures indicating further declines. Analysts highlight mounting skepticism about the long-term viability of AI-related spending, particularly as scrutiny grows over investment practices within major tech firms. The Chinese DUV breakthrough also adds complexity to global semiconductor supply chains, intensifying the US-China technology rivalry.