US technology stocks were set to slump, tracking a rout in global semiconductor shares as concerns over artificial intelligence spending were compounded by rising competition from China. The Nasdaq 100 futures signaled a lower open after Asian chipmakers led declines overnight. TSMC and Samsung Electronics shares fell in Taipei and Seoul trading, dragging down European peers like ASML Holding. Investors are reassessing the sustainability of massive AI infrastructure investments amid signs of slowing demand and geopolitical tensions.

The Philadelphia Semiconductor Index (SOX) has erased year-to-date gains, reflecting broader anxiety about the sector's valuation. Analysts warn that export restrictions and domestic Chinese chip development could further pressure US semiconductor revenues. Market participants await earnings from major tech companies for clarity on capital expenditure plans.