Lam Research shares fall 3.6% and Vishay Intertechnology shares fall 1.9% as semiconductor stocks pull back amid US-China tensions over AI technology

Semiconductor stocks declined following increased geopolitical tensions between the US and China over AI technology. China ordered Meta to unwind its $2 billion acquisition of AI startup Manus citing national security concerns, while the White House accused China of stealing American AI technology on an 'industrial scale.'

Lam Research (a semiconductor manufacturing company) fell 3.6%, while Vishay Intertechnology (an analog semiconductors company) fell 1.9%. The pullback also reflected concerns over global supply chain disruptions stemming from conflict involving the US, Israel, and Iran, which raised concerns about potential production delays and increased operational costs.

Lam Research had posted revenue of $5.84 billion in its most recent quarter, which grew by double-digits both sequentially and year-over-year, driven by high demand from foundry and memory customers for its chip-making tools. The company's shares have had 27 moves greater than 5% over the last year.