Global Semiconductor Stocks Plunge on AI Spending Concerns Despite Record Earnings
A broad selloff in global semiconductor stocks erased about $1.5 trillion in market value from late June to mid-July 2026, triggered by profit-taking and investor fears that AI infrastructure spending cannot sustain rapid growth. Despite Samsung reporting record operating profit of $59 billion and SK Hynix’s successful $26 billion Nasdaq debut, shares of major chipmakers—including Samsung, SK Hynix, Micron, and ASML—fell sharply across Asia, Europe, and the U.S. The downturn reflects concerns over memory chip cyclicality, high valuations, and potential cooling of hyperscaler demand. A partial rebound occurred on July 15, but analysts warned of speculative excess.
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Nvidia, Micron, AMD sink as SK Hynix results fail to impress, AI trade unwinds
Semiconductor stocks fell sharply on July 29, 2026, as SK Hynix's record quarterly profit failed to meet lofty expectations, fueling a broader unwinding of the AI trade. The PHLX Semiconductor Index dropped over 3%, with Nvidia falling 2%, AMD 5%, Micron 5%, and Sandisk 7%. SK Hynix's operating profit surged 557% year-over-year but missed estimates due to a less favorable product mix, not weakening demand. The company plans to boost 2026 capital spending by 50% to at least $31 billion, raising overinvestment concerns. Analysts cut price targets but maintained positive ratings. The sell-off extended to Asian markets, with the KOSPI down nearly 6%. A strong debut by Chinese memory maker CXMT added supply pressure. Investors now await AI spending updates from Microsoft, Amazon, and Meta, while Fed rate hike fears also weigh on sentiment.
Chip stock rout pushes Nasdaq into correction territory
A severe global sell-off in semiconductor stocks drove the Nasdaq into correction territory on Tuesday, falling nearly 2% at the US market open and approaching the 10% threshold for a technical correction. The rout also forced South Korea's Kospi to halt trading for the third time in weeks, with chipmakers SK Hynix and Samsung hit hardest. Investor anxiety has been building over the scale and speed of AI-related capital expenditure, exacerbated by the blockbuster Shanghai IPO of Chinese chipmaker CMXT, which surged 466% on debut. Memory chip firms Sandisk and Western Digital suffered double-digit percentage losses. Analysts warn that leveraged tracker funds, which amplified the boom, are now magnifying the downturn. Despite the correction, the Nasdaq remains up over 8% year-to-date, while the FTSE 100 rose 0.8% due to its lack of AI exposure.
Asian Technology Stocks Extend Sell-off Led by Semiconductor Declines
Asian technology stocks continued their sell-off on Wednesday, led by semiconductor names after a weak session in the U.S. In South Korea, SK Hynix fell over 10% despite record quarterly profit and revenue, missing analysts' estimates. Samsung Electronics lost over 4%, and LG Innotek dropped 9%. Japanese chip stocks also declined, with Kioxia down 10%, Tokyo Electron falling 8.5%, and SoftBank Group losing over 7%. Mainland China's ChiNext 300 index fell 1.83%, and the Hang Seng China Semiconductor Chips Index dropped over 5%. Taiwan's TSMC was 1.32% lower. The declines followed a weak U.S. session where Nvidia closed flat, Intel dropped nearly 6%, AMD lost 8%, and memory stocks Micron, Seagate, Western Digital, and Sandisk fell sharply. Despite the pullback, Aberdeen Investments views the sell-off as an opportunity to add exposure to high-quality businesses at more attractive valuations.
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Chip Stocks Extend Pullback Amid AI Bubble Fears
On July 28, 2026, shares of major chipmakers including Broadcom, Micron, Marvell, Intel, SanDisk, and SK Hynix fell sharply, extending a rough stretch for the AI trade and dragging the Nasdaq lower. The Philadelphia Semiconductor Index dropped over 4%, while the Roundhill Memory ETF sank more than 8%. The sell-off is driven by growing investor concerns over the sustainability of AI spending, as analysts note that solid tech earnings have not been rewarded recently. Upcoming earnings reports from Magnificent Seven firms this week may provide further insight into big tech spending plans. Meanwhile, China-listed memory chipmaker CXMT lost 4% after soaring on its Shanghai Stock Exchange debut the previous day.
Chip Stocks Crash While Broader Market Holds Steady
On July 28, 2026, semiconductor stocks experienced a severe sell-off, with the PHLX Semiconductor Index briefly breaking below 11,000, down over 25% from its June peak. Major memory chip stocks like SK Hynix, Micron Technology, and Sandisk saw significant declines, with Micron losing over $450 billion in market value since its June high. The Roundhill Memory ETF fell roughly 11% and is down over 40% from its June high. However, the broader market showed resilience, as the S&P 500 equal-weight index rallied 1% to a record high, with nearly three-quarters of S&P 500 stocks still higher in July. Nvidia and Broadcom showed relative strength, limiting losses. The article notes that the chip crash remains a sector-specific problem unless the equal-weight index or advance-decline line reverses.
Micron, SK Hynix stocks sink as AI chip sell-off deepens
Semiconductor stocks experienced a significant sell-off on July 28, 2026, with the PHLX Semiconductor Index falling over 5%. Major AI chip companies including Nvidia, AMD, Broadcom, and Intel saw declines, while memory leaders Micron, SK Hynix, and Sandisk each dropped more than 5%. The sell-off was triggered by declines in Asian semiconductor stocks, particularly in South Korea where SK Hynix fell over 14% and Samsung Electronics dropped over 13%. Concerns about circular financing, intensifying competition from China, and a report that Nvidia was in talks to backstop $250 billion in funding for OpenAI contributed to the downturn. Additionally, Chinese memory maker CXMT's blockbuster IPO in Shanghai, where it surged 470% on debut, renewed fears about oversupply in memory chips. A report about a Chinese state-backed company mass-producing chipmaking equipment also fueled a sell-off in ASML shares. The sector has fallen over 20% from its June highs, entering bear market territory as investors question the returns from massive AI infrastructure spending.
Micron, SK Hynix stocks fall as chip sell-off deepens
Semiconductor stocks continued their decline on Tuesday, with the PHLX Semiconductor Index falling over 2%. Major chipmakers including Nvidia, AMD, Broadcom, Intel, Marvell, and Qualcomm all saw significant premarket losses. US-listed shares of memory leaders Micron, SK Hynix, and Sandisk dropped more than 5%. The sell-off was driven by declines in Asian and European semiconductor stocks, concerns about circular financing, and intensifying competition from China. Chinese memory maker CXMT's blockbuster IPO in Shanghai, where it surged 470% on debut, renewed fears of oversupply and downward pressure on memory chip prices. A report that a Chinese state-backed company began mass-producing key chipmaking equipment also fueled a sell-off in ASML shares. The broader semiconductor sector has fallen more than 20% from its June highs, entering bear-market territory as investors question the returns from massive AI infrastructure spending.
Micron, SK Hynix Stocks Sink as AI Chip Sell-Off Deepens
Semiconductor stocks experienced a significant sell-off on Tuesday, with the PHLX Semiconductor Index falling over 3%. US-listed shares of Micron Technology and SK Hynix dropped more than 8%, while Sandisk fell 13%. The decline was driven by multiple factors including concerns about circular financing in the AI sector, intensifying competition from Chinese memory maker CXMT which surged 470% in its Shanghai debut, and a report that a Chinese state-backed company began mass-producing key chipmaking equipment, fueling a sell-off in ASML shares. Nvidia lost its position as the world's most valuable company to Apple after reports it was in talks to backstop $250 billion in funding for OpenAI. The sell-off follows a broader trend where chip stocks have fallen over 20% from their June highs as investors grow skeptical about the returns from massive AI infrastructure spending. Investors are now awaiting earnings from Microsoft, Amazon, and Meta.
Chip Stocks Fall as South Korea's Kospi Plunges 10% Ahead of Big Tech Earnings
Chip stocks continued a multi-day sell-off on July 28, 2026, dragging Asian markets lower and pushing Nasdaq-100 futures down over 1% before the U.S. opening bell. South Korea's Kospi plunged roughly 10%, driven by heavy losses in SK Hynix and Samsung Electronics, each shedding more than 13%, triggering two trading halts by Korea Exchange. Japan's Nikkei fell about 4%. The VanEck Semiconductor ETF lost 3% in early U.S. trading, with Micron Technology and Western Digital down roughly 5%. The sell-off reflects mounting concern over the cost of AI infrastructure buildout and signs China is narrowing the technology gap. Investors are closely watching earnings reports from Amazon, Meta, Microsoft, and Apple later this week. The Federal Reserve is expected to leave rates unchanged at its Wednesday meeting, though markets have priced in a September quarter-point hike. Oil prices also fell for a second session amid talks between Iran, Saudi Arabia, and Oman about reopening the Strait of Hormuz.
SK Hynix plunges 10% in Seoul as semiconductor selloff deepens across Asia
South Korean semiconductor shares tumbled on Tuesday, extending a rout in chipmakers after another weak session on Wall Street. SK Hynix plunged more than 10%, while Samsung Electronics fell over 8%. Other AI-linked names also came under heavy selling, with Samsung SDI dropping over 7%, LG Innotek sliding nearly 14%, Seoul Semiconductor falling about 6% and LG Chem losing more than 4%. Japan's semiconductor sector also traded lower, with Tokyo Electron dropping more than 9%, Advantest sliding over 8%, and SoftBank Group falling nearly 5%. Kioxia plunged more than 15%. The selloff followed another weak session for U.S. semiconductor stocks on Monday, with the VanEck Semiconductor ETF losing more than 2%. AMD and Teradyne dropped 5% and 4% respectively. The weakness underscores how closely Asian technology shares and the U.S. AI trade have become intertwined, as Samsung and SK Hynix are major suppliers of high-bandwidth memory chips used in AI servers.
Japanese AI and chip stocks plunge as US semiconductor rout spreads to Asia
Japanese AI-linked stocks suffered heavy losses on Friday, tracking a fresh sell-off in U.S. semiconductor shares that spread across Asia. SoftBank Group fell 8.8%, Tokyo Electron lost 9%, and Advantest slid 9.4%. Memory chipmaker Kioxia plunged over 14% after a Texas jury ordered it to pay $229 million in damages for patent infringement. The declines followed a weak session on Wall Street, where the Nasdaq Composite dropped 1.47% and the VanEck Semiconductor ETF fell nearly 4%. TSMC raised its full-year capital expenditure forecast to between $60 billion and $64 billion, but investors focused on concerns that the industry's aggressive investment cycle may be increasingly difficult to justify. Strategists described the sell-off as an unwinding of crowded AI momentum trades rather than a deterioration in long-term fundamentals. South Korean markets were closed for a public holiday.
SK Hynix shares plunge 9% as Asia sees tech rout, tracking U.S. chip losses
Asian semiconductor stocks tumbled on Thursday, July 16, 2026, as a sell-off in U.S. chipmakers spilled into the region. SK Hynix shares plunged over 9% in Seoul, reversing the previous session's 8% rally, amid continued volatility since its U.S. listing. Samsung Electronics dropped more than 7%, and other regional firms like Advantest, SoftBank Group, and Tokyo Electron also fell sharply. The losses followed a U.S. sell-off where Micron Technology sank 8% and Intel lost over 4%. The declines occurred despite strong earnings from ASML, which raised its full-year sales guidance. A trader noted that semiconductors now make up roughly 20% of the S&P 500, a level seen as unsustainable and reminiscent of the dot-com bubble, warning that valuations may be due for a correction.
SK Hynix Leads Asian Tech Rally as Semiconductor Stocks Rebound
On July 15, 2026, South Korean memory chipmaker SK Hynix surged over 11%, leading a broad rally in Asian technology shares. The gains tracked a rebound in U.S. semiconductor stocks after a sharp selloff earlier in the week. Domestic rival Samsung Electronics rose 6.8%, and Seoul Semiconductor gained 6.4%. The rally extended to Japan's chip sector, with Advantest, Lasertec, and Disco posting gains. The recovery followed a 2.5% rise in the VanEck Semiconductor ETF on Wall Street, where Micron Technology and Lam Research each climbed about 5%. Despite the rebound, some investors warned of speculative excess in AI-linked hardware stocks. Jordan Cvetanovski of Pella Funds noted that while AI infrastructure demand remains strong, recent volatility shows classic signs of a potential rude shock in the AI space.
Global Semiconductor Stocks Slide as Record SK Hynix Selloff Ripples Across Markets
On July 13, 2026, global semiconductor stocks experienced a sharp decline led by SK Hynix, which suffered its largest one-day share price drop of over 15% in South Korea. The selloff, triggered by profit-taking after SK Hynix's blockbuster Nasdaq debut last week, spread from Asia to Europe and U.S. premarket trading. European chipmakers ASMI, ASML, Besi, STMicroelectronics, and Infineon fell 1-2%. In the U.S., Western Digital dropped 6.5%, Micron lost 5.4%, SanDisk fell nearly 7%, and AMD and Intel traded nearly 3% lower. The decline reflects investor reassessment of valuations despite continued optimism for AI-driven demand for high-bandwidth memory chips. SK Hynix raised over $26 billion in its U.S. listing, but analysts warn of normalization in cycle dynamics limiting upside.
Chip stocks sell off after Samsung earnings fall short of high AI bar
Semiconductor stocks experienced a broad selloff on Tuesday after Samsung Electronics' quarterly results failed to meet Wall Street's lofty artificial intelligence demand expectations, despite the company's profit surpassing both Nvidia and Apple and forecasting an 1,800% jump in operating profit. Samsung shares dropped 8%, dragging down other memory chip makers like SK Hynix (down 7%), Sandisk (down 8%), and Micron Technology (down 5%). The iShares Semiconductor ETF slumped about 5%, with Intel, Applied Materials, and Lam Research also falling sharply. The selloff reflects growing investor concern that AI spending cannot sustain skyrocketing memory prices, which have already forced Apple and Microsoft to hike prices on consumer products. Additionally, a report that Chinese AI startup Deepseek is developing its own chip to bypass U.S. export bans added to the negative sentiment. The downturn also comes ahead of SK Hynix's planned Nasdaq listing this week.
Micron, Samsung, SK Hynix Lead Memory Stocks Into Bear Market
Memory stocks, including Micron, Samsung, and SK Hynix, have entered a bear market, each falling more than 20% from recent highs. The sell-off has erased approximately $1.5 trillion in market value from semiconductor stocks since June 25, 2026, with Micron alone losing nearly $350 billion. The downturn has broadened to include other chipmakers like SanDisk, Intel, Applied Materials, and Lam Research, each losing over $100 billion. Notably, Samsung reported record operating profit of $59 billion and sales of $113 billion, yet the market reacted negatively, indicating a shift in investor sentiment. The PHLX Semiconductor Index is not yet in bear territory but is approaching it. The article notes that previous dips were quickly bought, but this sell-off has been more sustained. The upcoming SK Hynix US listing is now seen as a sentiment test rather than a victory lap, raising questions about whether AI memory trade optimism has been fully priced in.
Samsung's Blowout Quarter Still Spooks the Chip Trade
Samsung Electronics reported preliminary second-quarter results showing operating profit of 89.4 trillion won ($58.4 billion), nearly 19 times higher than a year earlier, and revenue more than doubling to 171 trillion won. Despite beating analyst expectations, Samsung shares fell about 7% in Seoul, dragging down other chip stocks globally. SK Hynix dropped 6%, ASML fell over 5% in Amsterdam, and Soitec plunged more than 10%. U.S. chip stocks including Micron, Western Digital, Applied Materials, KLA, Intel, AMD, and Nvidia also declined. The selloff reflects investor concerns that AI infrastructure spending may not sustain its rapid pace, with valuations already pricing in extraordinary growth. Memory chip cyclicality and potential cooling of hyperscaler demand are key worries. Samsung will publish full results on July 30.