- Chip stocks triggered a sharp Wall Street sell-off amid AI profit-taking concerns
- SanDisk fell 11%, Micron dropped about 9%, AMD declined over 5%, Intel down nearly 3%
- VanEck Semiconductor ETF lost 6% as investors reduced exposure before key earnings
A sharp sell-off swept through semiconductor stocks on Wall Street on Tuesday, wiping out gains across some of the biggest beneficiaries of the artificial intelligence boom. Memory-chip makers and semiconductor companies led the decline, with investors locking in profits ahead of key earnings and amid weakness across global technology markets.
SanDisk plunged as much as 11%, while Micron Technology slumped up to 12%, extending losses ahead of its quarterly earnings report due later this week. Storage solutions company Seagate Technology dropped more than 7%, adding to the pressure on the sector.
Among major chipmakers, Intel fell around 7%, while Advanced Micro Devices (AMD) and Qualcomm declined between 6% and 7% as investors reduced exposure to AI-linked semiconductor stocks.
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The weakness echoed a broader technology rout in Asia, where South Korean memory-chip giant SK Hynix tumbled more than 12%, dragging regional tech shares lower. The sell-off also hit semiconductor-focused funds, with the VanEck Semiconductor ETF (SMH) falling about 6%.
Real-time market data showed SanDisk shares down 10.7% at 16.70 Thai baht, Micron Technology falling 9.05% to $1,101.79, AMD declining 5.19% to $522.98 and Intel slipping 2.77% to $137.04.
Market participants largely attributed the pullback to profit-taking after a prolonged rally driven by optimism around artificial intelligence. “The AI beneficiaries are the sell-off, and I don't think they're expensive, but they're crowded,” Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management, told CNBC.
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Investors are now turning their attention to Micron's earnings later this week for fresh insights into AI-related demand and whether the semiconductor sector's rally still has room to run.
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