Semiconductor stocks are getting hit with a wave of bearish pressures following news that the U.S. will take new steps to limit the export of advanced chips used for AI.

In the early days of the artificial intelligence (AI) infrastructure build-out, graphic processing units (GPUs) have been the go-to chips for companies to train AI models and run inference. GPUs are powerful chips that were originally designed to speed up graphics rendering in video games,

Chip stocks surged in intraday trading Monday after Taiwan's Foxconn posted record fourth-quarter revenue, driven by the boom in artificial intelligence (AI) demand.