New Delhi, March 26 -- Semiconductor stocks slumped on Thursday following Alphabet Inc.'s Google highlighting research into a novel algorithm designed to optimize storage efficiency for artificial intelligence. This technological advancement from Google could potentially mitigate current supply shortages, leading to a downward adjustment in market pricing.

Although the research was originally published last year, the company drew fresh attention to it on social media platform X this week.

According to Google, its TurboQuant algorithm can diminish the memory capacity required for operating large language models by a factor of six, significantly lowering the financial burden of AI training.

Investors are concerned this could dampen the a...