Chip Stocks Suffer Sharp Declines on Q3 Open; Micron Down 11%, Intel Falls 9%, AMD Slides 7%

According to CNBC, major chip stocks tumbled on the first trading day of Q3 on Wednesday (July 1), reversing gains from a blockbuster second quarter. Micron dropped 11%, erasing $138 billion in market cap, while Intel fell 9% and Advanced Micro Devices declined 7%. The VanEck Semiconductor ETF (SMH) slid more than 5%, a day after closing Q2 up 71%.

The selloff was triggered partly by reports that Meta may rent out excess AI computing capacity, raising concerns that AI processing supply could be catching up to demand. Semiconductor equipment makers Lam Research, KLA, and Applied Materials, which all more than doubled in Q2, each fell at least 10% on Wednesday.