By George Glover
Artificial-intelligence stocks were taking a beating in premarket trading Tuesday, suggesting that Monday's rebound would end up being short-lived.
Samsung Electronics set the tone for the broader market overnight. The South Korean memory-chip maker forecast a huge surge in profit, but that wasn't enough to stop investors from ditching shares.
That weakness looked set to bleed into U.S. trading, with chip manufacturer Intel sliding 4.4% and Samsung rival Micron Technology dropping 5.8% ahead of the opening bell.
Chip maker Advanced Micro Devices, glassmaker Corning, chips and networking company Marvell Technology, and server maker Super Micro Computer also were among the other AI-related stocks in the red.
These stocks also making moves in premarket trading:
Crinetics Pharmaceuticals soared 99% to $83.66 after Vertex Pharmaceuticals said it agreed to buy the endocrine diseases biotech for $85 a share in cash, for a total equity value of about $10 billion.
Fiserv jumped 8% after The Wall Street Journal reported that big banks were holding talks to acquire a network owned by the fintech company, citing people familiar with the matter. Fiserv didn't respond to a request for comment from Barron's.
Rivian Automotive tumbled 8.2% after the electric-vehicle manufacturer said it would sell 75 million shares to help repay a $4.5 billion loan from the Energy Department.
SpaceX slipped 1.3%. The rocket and AI company is set to join the Nasdaq 100 before the market opens.
Write to George Glover at george.glover@dowjones.com
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