Shares of major chipmakers fell before the opening bell on Wednesday, September 2 as investors stay cautious about the semiconductor sector.
Among these stocks, SK Hynix dropped the most, falling 1.17% to $160.78, followed by SanDisk, down 1.05% at $1,536.87. Intel traded 0.94% lower at $88.97, AMD dipped 0.87% to $459.61, while Micron slipped 0.84% to $933.44.
The decline in chip stocks comes as Commerce Secretary Howard Lutnick told CNBC that the Trump administration is preparing a tariff framework for chips, with companies already aware of the move.
Last week, Lutnick confirmed a Politico report that the White House is working on such as a move.
“I think what you're going to see is targeted, thoughtful tariff policy that basically says if you build here, you don't pay, but if you don't build here, expect to pay to enter the greatest market in the world,” Lutnick said.
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These tariffs have been in the works for some time, but the administration has not mentioned this consideration publicly.
“We will be successful in semiconductors. They're going to be built in America,” he said.
Chip stocks have remained volatile for some time now with cycles of profit-taking and massive sell-offs, as concerns grow over heavy artificial intelligence spending by big tech companies, and pressures from new domestic chip production and memory IPOs in China, according to reports.
The dip in stcoks also come amid ongoing tenison in the Middle East after US carried out its second round of attacks against the Islamic Republic in three days, following reported attacks by the IRGC. Additionally, shipping risks heighetned after a tanker was hit by three unidentified projectiles while transiting the Strait of Hormuz on Monday, reports said. With the ongoing conflict, oil prices rallied as Brent crude crossed $95 a barrel mark.
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