- Shares of major chipmakers fell over 3% before market open on September 1
- SanDisk led the decline, dropping 3.24% to $1566.7, followed by Intel at $89.51
- US equity futures, including Dow and S&P 500, dropped about 0.5% amid market pressure
Shares of major chipmakers fell over 3% before the opening bell on Tuesday, September 1, as heavy selling pressure continued with investors remaining cautious about the semiconductor and technology sectors.
Among these stocks, SanDisk declined the most, dipping 3.24% to $1,566.7, followed by Intel, down 2.45% at $89.51. SK Hynix and Micron dropped 2.06% each to $164.58 and $958.73 respectively, while AMD slipped 1.73% to $470.72 and Nvidia fell 1.49% to $220.78.
The decline in these stock came as the broader US equity market also remains in pressure. Dow Jones Industrial Average futures dropped 240 points, or 0.5%, while S&P 500 futures fell 0.5%. Nasdaq-100 futures were in red too, slipping nearly 1% amid rising oil prices, higher global bond yields and renewed US-Iran tensions.
Why are chip stocks falling today?
Market expert highlights two reasons for fall in chip stocks today, including Fed's stance on inflation, China's memory capacity and investor interests for new AI listings.
According to Harshal Dasani, Business Head at INVasset PMS, "A hot labour print and sticky inflation have pushed traders to price rate hikes rather than cuts this year, and long-duration growth assets carry the entire adjustment when the terminal rate moves up."
Chip stocks are facing pressure from competitive and supply-side concerns, including rising Chinese memory-chip capacity that could increase supply and weigh on prices and margins. At the same time, investors may be shifting money from existing semiconductor stocks towards a coming wave of AI listings, Dasani noted.
"This is a de-rating, not a demand break, so the relevant test is hyperscaler capital expenditure guidance, not the daily tape," he said.
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