The semiconductor trade that seemed like it could only go up has discovered gravity. Major chip stocks have been hammered in recent weeks, with the VanEck Semiconductor ETF dropping 10% in just five trading days and heavyweights like SK Hynix, Samsung, Micron, and AMD all suffering steep losses.
The numbers tell a brutal story
On June 23, the carnage was widespread and indiscriminate. SK Hynix and Samsung each fell approximately 12%, while Micron dropped about 10%. AMD and Intel weren’t spared either, both declining around 8% in the same period.
The PHLX Semiconductor Index plummeted by as much as 10% in a single session during early June. The Nasdaq Composite had its worst day in over a year on June 5, falling 4% in a sell-off led almost entirely by chip stocks.
Chip stocks plunged in three of four trading sessions heading into June, driven by profit-taking, stretched valuations, and disappointing guidance from Broadcom that gave investors a reason to hit the sell button.
