Major chip stocks dipped as much as 4% before the opening bell on Thursday, September 10, as investors stayed cautious on AI and semiconductor space.
Among these stocks, SK Hynix declined the most, up 3.7% at $198.63, followed by Intel, trading 3.16% lower at $106.24. AMD fell 1.8% to $521.1, while Micron slipped 1.7% to $1,027.7 by 8:17 am ET or 5:54 pm IST.
The recent drop comes amid extreme volatility in the semiconductor space, with traders using consecutive gains to book profits, while sharp declines are seen as opportunities to buy on dips.
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Meanwhile, the SK Hynix tumpbled despite JPMorgan initiated coverage on South Korean memory-chip maker with an Overweight rating and a $245 price target, citing sustained demand for memory chips from the artificial intelligence industry.
JPMorgan expects SK Hynix to deliver a 34% compound annual growth rate in earnings per share over the next two years, underscoring its bullish view on the company's growth prospects.
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On Wednesday, chip stocks rose despite broader weakness on Wall Street on Wednesday, with SK Hynix, SanDisk, Micron Technology and AMD gaining as much as 5%.The immediate trigger for the previous session's rally was a bullish assessment from Goldman Sachs, which pointed to improving technical trends in Micron and SanDisk.
Goldman said both Micron and SanDisk have broken out of the downtrends that had constrained their shares through the summer. Semiconductor volatility has also eased significantly from its July peak, suggesting the sector may be entering a more favourable phase for investors.
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