US semiconductor stocks fell sharply in pre-market trading on June 23, with Micron Technology, Intel and Marvell Technology each dropping more than 7%. The broad-based decline also hit optical communication names including Corning and Lumentum, which fell more than 5%. The selloff comes after a period of heightened volatility for the sector.
US semiconductor stocks plunged in pre-market trading Tuesday, with memory chip and optical communication names falling as much as 7%, extending a volatile stretch for the sector.
The iShares PHLX Semiconductor ETF fell more than 5% in pre-market trading after closing at $655.01, according to exchange data. The ETF, which holds 36 semiconductor stocks including Nvidia, Broadcom and Micron, has a beta of 2.90, amplifying broader market moves.
Micron Technology Inc. led the decline, falling more than 7% in pre-market trading. Intel Corp., SanDisk and Marvell Technology Inc. each dropped at least 7%, while Advanced Micro Devices Inc., Arm Holdings Plc and Qualcomm Inc. fell more than 5%. Optical component makers also sold off, with Corning Inc. and Lumentum Holdings Inc. declining more than 5%, and Coherent Corp. falling more than 3%.
The selloff threatens to erase recent gains in the Philadelphia Stock Exchange Semiconductor Index, which had recovered more than 180% over the past year before this month's volatility. The sector's high beta — nearly three times the broader market — means any macro-driven de-risking disproportionately hits chip stocks.
The declines come after a period of mixed signals for the semiconductor industry. Chip stocks had rallied sharply over the past year on artificial intelligence spending, with the SOXX surging more than 180% from its 52-week low of $230.46. However, recent sessions have been volatile, with the VanEck Semiconductor ETF rising 1.3% on Monday before this morning's reversal.
The breadth of the selloff — spanning memory, optical components, chip design and manufacturing equipment — suggests macro factors rather than company-specific news are driving the move. Memory chip makers Micron and Western Digital fell alongside optical names Corning and Lumentum, while processor designers Intel, AMD and Arm all declined.
This article is for informational purposes only and does not constitute investment advice.
