Semiconductor stocks came under pressure on Monday, with memory-chip makers leading the decline as investors turned cautious on the outlook for AI-driven demand after a blistering rally in the sector.
SanDisk Corp emerged as the biggest laggard, falling more than 8%, while Micron Technology and Intel dropped over 4% each. Advanced Micro Devices (AMD) and Nvidia also traded lower, slipping about 1.4% each in early trade.
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The weakness in memory-chip stocks comes as investors reassess valuations and demand expectations following recent gains. Market participants are also closely watching developments around South Korean memory giant SK Hynix, a key supplier of high-bandwidth memory (HBM) chips used in artificial intelligence servers.
In contrast to the broader selloff, SK Hynix's US-listed ADR edged higher by about 0.8%, suggesting investors remain constructive on the company's long-term positioning in the AI memory market despite near-term volatility.
The decline follows a strong run for semiconductor shares, with AI-linked chipmakers having outperformed broader markets in recent months. Analysts have cautioned that elevated valuations could leave the sector vulnerable to bouts of profit-taking, particularly if investors question the pace of AI infrastructure spending or memory pricing trends.
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As of 11:45 a.m. GMT-4, SanDisk was down 8.28%, Micron Technology fell 4.20%, Intel declined 4.26%, AMD slipped 1.40% and Nvidia lost 1.43%. Meanwhile, SK Hynix ADR traded 0.81% higher, standing out as one of the few gainers among major semiconductor names.
Investors will continue to track corporate commentary and demand signals from AI infrastructure companies for clues on whether the sector's rally has further room to run or is entering a phase of consolidation.
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