- US chip stocks fell as investors booked profits after a strong Q2 rally in AI winners
- Micron Technology dropped 2.79% despite reporting quadrupled revenue from AI demand
- Intel and AMD also declined, with Intel falling 1.04% and AMD down 0.75%
US chip stocks edged lower on Thursday as investors booked profits in some of Wall Street's biggest artificial intelligence winners following a record-breaking second-quarter rally. The weakness in semiconductor stocks came even as several companies continue to benefit from strong demand for AI infrastructure and data-centre chips. Investors appeared to be taking some gains off the table after the sharp run-up in technology shares.
Micron Technology was among the biggest decliners, falling 2.79% to $1,035.40. Intel declined 1.04% to $118.85 after slipping around 2% in the previous session, while Advanced Micro Devices fell 0.75% to $607.
SanDisk was relatively resilient, trading 0.17% higher at $1,741.85 after declining 0.75% in the previous session.
The moves came as the broader US market also turned lower after opening in positive territory. The Dow Jones Industrial Average fell 0.41%, while the S&P 500 declined 0.19%. The Nasdaq Composite was down 0.09%.
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Micron has been one of the major beneficiaries of the AI investment boom, but its latest earnings beat was not enough to prevent profit-taking. The memory-chip maker reported blockbuster results, with revenue quadrupling in the latest quarter as demand for memory products used in AI infrastructure remained strong.
However, the stock failed to attract fresh buying interest after an extraordinary rally. Micron shares had already gained more than 200% this year before Thursday's decline. The pullback highlights the increasingly high expectations embedded in some of the market's biggest AI winners. Even strong earnings and robust demand may not be enough to drive further gains when investors have already priced in substantial growth.
Technology shares had led the broader US market higher in September, even as a majority of stocks in the benchmark declined. That divergence continued into the latest session, with technology and AI-linked stocks facing profit-taking while many stocks outside the technology sector were weaker or broadly flat.
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