Global Chip Stocks Slide as AMD, Intel, Micron Drop

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Advanced Micro Devices (AMD) fell over 8%, Intel Corporation (INTC) dropped nearly 6%, while Micron Technology (MU), Seagate Technology (STX), Western Digital Corporation (WDC), and Sandisk (SNDK) posted sharp losses as semiconductor stocks extended a global sell-off.
Asian chipmakers suffered even steeper declines, with SK Hynix falling 14.65%, Samsung Electronics losing more than 13%, Tokyo Electron dropping 10.96%, and Kioxia plunging over 18%.
Investors cited concerns over China’s semiconductor advances, uncertainty around AI spending, and expectations that memory prices could peak in 2027, although analysts remain constructive on the long-term AI outlook.

Global Chip Sell-Off Hits AMD, Intel, and Memory Stocks

Semiconductor stocks came under heavy pressure on Tuesday as a broad global sell-off spread from Asia to Europe and the U.S. AMD dropped more than 8%, Intel declined nearly 6%, while Micron and Seagate each lost over 8%. Western Digital fell almost 7%, and Sandisk tumbled 14% during the session.

Nvidia initially traded lower before recovering to finish nearly unchanged, outperforming much of the semiconductor sector. The weakness followed another decline in the VanEck Semiconductor ETF (SMH), which extended losses after falling more than 2% in the previous trading session.

Asian Chipmakers Lead the Decline

The sell-off was even more pronounced across Asian semiconductor markets. South Korea’s SK Hynix dropped 14.65%, while Samsung Electronics fell more than 13%. Other AI-related suppliers, including Samsung SDI, LG Innotek, Seoul Semiconductor, and LG Chem, also posted steep losses.

Japanese chip companies extended the weakness, with Tokyo Electron and Advantest each falling more than 10%, while Kioxia plunged over 18%. Taiwan Semiconductor Manufacturing Co. (TSM) declined nearly 3%, and China’s Hang Seng China Semiconductor Chips Index fell more than 7%, highlighting the broad-based pressure across the global semiconductor supply chain.

China Concerns and AI Spending Uncertainty Weigh on Sentiment

Investor sentiment weakened following reports that Chinese companies are advancing in semiconductor technologies, including memory chips and lithography equipment. European chip equipment maker ASML Holding N.V. (ASML) also remained under pressure after reports that a Chinese manufacturer is developing immersion deep ultraviolet lithography systems, an area traditionally dominated by ASML.

Analysts also pointed to growing uncertainty surrounding the AI investment cycle. Acadian Asset Management’s Owen Lamont said investors still have limited visibility into how AI spending will ultimately affect the broader economy, while leveraged ETFs may be amplifying volatility across semiconductor stocks.

Despite the recent sell-off, Standard Chartered maintained a constructive long-term outlook, stating that AI-driven demand should continue supporting leading semiconductor companies even as memory prices are expected to peak in 2027.