On Monday, most semiconductor stocks fell, with the Philadelphia Semiconductor Index dropping 1.5%. ARM Holdings tumbled over 8%, Qualcomm sank more than 7%, Intel slid nearly 5%, Marvell Technology and AMD each fell over 3%, and Micron Technology declined more than 2%.

NVIDIA, however, bucked the trend, rising over 3%.

On the news front, OpenAI suddenly paused the training and testing of its most advanced AI models, fueling market concerns that a slower pace of AI development could weigh on chip demand. Meanwhile, surging oil prices and rising U.S. Treasury yields further amplified the selling pressure on tech stocks.

Notably, memory chip giant Micron Technology is set to release its latest earnings report after the U.S. market close on Wednesday, which will serve as an important window for investors to gauge the health of the memory chip and AI data center supply chain.