- Shares of Micron, AMD, SK Hynix, and SanDisk fell in pre-market trading after a strong rally
- Micron dropped 1.10% to $1,032.50; AMD declined 1.14% to $608.50 in early trading
- Investors took profits amid high valuations and upcoming US-China summit on tech and trade
Shares of major chipmakers including Micron Technology, AMD, SK Hynix and SanDisk pulled back in pre-market trading on Tuesday after a strong multi-day rally, as investors appeared to lock in some gains and turned cautious ahead of key macro and geopolitical developments.
Micron Technology was down 1.10% in pre-market trading at $1,032.50, after closing 2.77% higher at $1,043.96. Advanced Micro Devices fell 1.14% to $608.50 after surging nearly 10% in the previous session, while SK Hynix declined 1.36% to $186.30. SanDisk slipped 0.34% to $1,760.66.
The pullback comes after a sharp rally across semiconductor stocks over the past three to four sessions. The move suggests some profit-taking after the recent gains, particularly in stocks that have seen valuations rise rapidly on optimism around artificial intelligence and memory demand.
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AMD had jumped about 10% in the previous session, briefly taking its market capitalisation above the $1 trillion mark. Intel also gained about 12%, while Nvidia advanced around 2%. Meta Platforms surged more than 11%, and optical-fibre maker Corning gained nearly 6%.
Beyond profit-taking, investors are also keeping an eye on the broader macro backdrop and developments in US-China relations.
US President Donald Trump and Chinese President Xi Jinping are expected to meet in Washington this week, with artificial intelligence, tariffs, rare-earth minerals and the Iran war among issues expected to feature in discussions.
Before Xi's visit, US Treasury Secretary Scott Bessent met Chinese Vice Premier He Lifeng, adding another layer of focus for markets already sensitive to developments in technology and trade.
The broader market rally was also supported by a sharp fall in oil prices. West Texas Intermediate crude futures dropped 4.5% to $95.78 a barrel, while Brent crude settled more than 3% lower at $100.34.
US Treasury yields also eased, with the 10-year yield falling more than four basis points to 4.951%. Yields have remained elevated amid concerns over rising government debt, higher oil prices and persistent inflation.
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Markets will also track the Richmond Fed's manufacturing survey and speeches from New York Fed President John Williams and Richmond Fed President Tom Barkin.
On the earnings front, AutoZone is scheduled to report before the market opens, followed by KB Home after the close.
While Tuesday's pre-market decline has come after a strong run in chip stocks, investors remain focused on whether the AI-driven semiconductor rally can sustain its momentum amid elevated valuations, macroeconomic uncertainty and growing competition in the global chip industry.
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