Major semiconductor stocks except SK Hynix traded lower during the trading session on Wednesday, August 19 continuing with its recent losses as investors remained cautious on the sector.
The fall comes despite positive developments in the chipmaking space, including SK Hynix's share buyback announcement and Samsung Electronics' $158 million investment plan.
By 10:18 am ET (7:48 pm), Intel shares dropped 4.68% to $92.16, while Sandisk slipped 4.5% to $1,552.66. Western Digital fell 5.16% to $470.58, AMD traded 3.97% lower at $465.16 and Micron Technology dipped 1.98% to $922.11. On the other hand, SK Hynix ADR gained 2.9% to $160.14.
The broader US market remained mixed on Wednesday. Dow Jones Industrial Average rose 0.52% to $53,623.22 and S&P 500 gained 0.37% at $7,720.46, while Nasdaq-100 futures dipped 0.24% to $29,420.23.
The semiconductor space has continued to face volatility since June 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.
The latest drop comes after SK Hynix announced it will buy back up to 24 million treasury shares from August 20 to November 19 and cancel them. It also boosted its shareholder return pledge to more than 50% of free cash flow, up from a previous target of within 50%. Further details expected alongside the company's third-quarter earnings. T
Meanhwile, Samsung Electronics plans to invest around $158 million, to establish an HVAC production line at its Gwangju operations site in South Korea. The company seeks to tap into the rapidly expanding HVAC market, particularly demand for advanced cooling solutions for AI data centres.
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