# Global Tech Stocks Slide on Chip Volatility Concerns as FERC Rejects Data Center Grid Plan

- URL: https://stocks.freetheai.org/news/global-tech-stocks-slide-on-chip-volatility-concerns-as-ferc-rejects-data-center-9cc02c
- Published: 2026-10-13T09:58:28Z
- Category: technology; sentiment: bearish; impact: medium
- Symbols: [NASDAQ:MU](https://stocks.freetheai.org/symbols/NASDAQ-MU), [NASDAQ:SKHY](https://stocks.freetheai.org/symbols/NASDAQ-SKHY), [OTC:SSNLF](https://stocks.freetheai.org/symbols/OTC-SSNLF), [OTC:SFTBY](https://stocks.freetheai.org/symbols/OTC-SFTBY), [OTC:TOELF](https://stocks.freetheai.org/symbols/OTC-TOELF), [OTC:ATEYY](https://stocks.freetheai.org/symbols/OTC-ATEYY)
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
- How write-ups are made: https://stocks.freetheai.org/how-we-write
- Not financial advice: https://stocks.freetheai.org/disclaimer

Global technology stocks dropped on Tuesday following weakness in U.S. semiconductor shares and fresh warnings regarding memory-chip volatility. ARK Investment Management cofounder Cathie Wood cautioned that expanding Chinese production capacity could worsen industry boom-and-bust cycles, leading her firm to avoid traditional memory manufacturers. Asian chipmakers and equipment suppliers posted widespread losses, including Micron Technology, Inc. (NASDAQ:MU), SK hynix Inc. (NASDAQ:SKHY), Samsung Electronics Co., Ltd. (OTC:SSNLF), SoftBank Group Corp. (OTC:SFTBY), Tokyo Electron Ltd. (OTC:TOELF), and Advantest Corp. (OTC:ATEYY).

Beyond the semiconductor decline, energy regulators added uncertainty for artificial intelligence infrastructure developers. The Federal Energy Regulatory Commission rejected key portions of a proposal from PJM Interconnection to connect data centers to the electric grid, citing concerns over state regulatory authority and rate discrimination. Meanwhile, Bank of America expects gold prices to struggle above $4,000 an ounce due to soft physical demand, and analysts noted that a small U.S. agreement for Russian diesel will likely have minimal impact on domestic fuel prices.

Investors are monitoring quarterly earnings reports from major banks alongside upcoming supply and demand trends across the chip sector. Market participants will also watch how power providers and data center developers revise grid connection plans to satisfy rising energy needs without violating regulatory standards.

## Key points

- Asian semiconductor stocks fell following weakness in U.S. chip equities, with Micron Technology, Inc. (NASDAQ:MU) dropping 3.9% on Monday.
- Cathie Wood warned that increasing Chinese memory-chip production capacity could intensify industry boom-and-bust cycles.
- The Federal Energy Regulatory Commission rejected key parts of a grid proposal for connecting data centers to power infrastructure.
- Bank of America forecasted that gold prices will struggle to remain above $4,000 an ounce over the next three months.

## Questions and answers

### Why are technology and semiconductor stocks falling?

Technology shares declined following Wall Street weakness in chip stocks and warnings that rising Chinese manufacturing capacity could increase price volatility in memory semiconductors.

### Why did federal regulators reject the PJM data center grid plan?

Regulators rejected key elements of the proposal over concerns that interim service and bring-your-own-capacity rules could infringe on state authority over retail electric rates and discriminate against large power users.

### Why might gold prices struggle to stay above $4,000 an ounce?

Bank of America forecasts gold prices will struggle above $4,000 an ounce over three months due to weak physical demand that exchange-traded fund buying may fail to offset.