US semiconductor stocks came under renewed selling pressure in pre-market trading on Monday, with memory and chip stocks falling sharply as investors booked profits after a powerful rally across the sector. Micron Technology shares fell around 3.73% to $930.45, while SanDisk declined 5.39% to $1,509.80. AMD shares dropped more than 2% to $463.08, while Intel fell 2% to $88.30.
The weakness extended across the broader semiconductor ecosystem. Coherent and Lumentum fell around 5% and 4.5%, respectively, while SanDisk also declined around 4%. Corning and Seagate each slipped around 3%.
The selling was not limited to US-listed chip stocks. In South Korea, SK Hynix fell around 3%, while Samsung Electronics plunged 9%, extending pressure across a semiconductor group that has been among the strongest performers of 2026.
The immediate trigger for Monday's weakness came from Samsung Electronics. The Korean chipmaker's shares plunged after its record shareholder-return plan failed to meet investor expectations. Samsung expects to return between 90 trillion won and 110 trillion won to shareholders in 2026. However, investors had been looking for clearer commitments on immediate share buybacks and share cancellations.
The disappointment triggered a broader sell-off in semiconductor stocks, particularly memory companies that have benefited substantially from the artificial intelligence boom.
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The latest decline does not necessarily indicate that investors have suddenly turned bearish on AI-related memory demand.
Memory stocks have been among the biggest beneficiaries of the surge in data-centre investment, tight supply conditions and stronger pricing. Companies such as Micron and SK Hynix have recorded spectacular gains as demand for high-bandwidth memory and other advanced memory products has increased alongside AI infrastructure spending.
The bigger concern for investors now appears to be positioning. After such strong gains, semiconductor stocks have become increasingly crowded trades. When valuations and investor positioning become stretched, even a relatively small negative catalyst can trigger significant profit-taking.
That appears to be the dynamic behind Monday's move, with investors reducing exposure rather than responding to a major deterioration in the underlying AI-memory demand outlook. Micron has delivered substantial gains in 2026, while SK Hynix has also more than doubled, making both stocks vulnerable to profit-taking after their sharp run-ups.
The semiconductor sell-off comes ahead of several important events for technology investors. Nasdaq-100 futures were down around 0.6% on Monday as investors trimmed technology exposure ahead of Nvidia's earnings later this week and the Federal Reserve's Jackson Hole gathering.
Nvidia is scheduled to report results on Wednesday, while Marvell Technology is due to announce its earnings on Thursday. Both updates are expected to provide important signals on the strength of AI-related demand and corporate spending on data-centre infrastructure.
Investors will be watching Nvidia's revenue outlook, AI accelerator demand and commentary on data-centre spending particularly closely. Any indication that AI infrastructure investment remains robust could help stabilise the broader semiconductor trade.
At the same time, the Jackson Hole meeting will keep monetary policy in focus, particularly as investors assess the outlook for US interest rates and Treasury yields.
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