Tech Stocks Plunge Amid AI Safety Concerns

Penguin Solutions, Kulicke and Soffa, and Qorvo shares plummeted in the afternoon session following a joint statement by Anthropic, OpenAI, and SpaceX CEOs calling for a slowdown in frontier AI model development due to safety risks. Citigroup shifted to a neutral stance on equity risk, warning of potential institutional pauses or decelerations in AI deployments, which could temper corporate earnings growth and pressure chipmakers. The CEOs' warnings sparked concern over the sustainability of heavy capital spending driving tech valuations higher.