US Semiconductor Stocks Plunge; Micron, Sandisk Tumble

Semiconductor stocks registered a sharp decline across the US stock market.

Major semiconductor stocks like Micron and Sandisk plummeted, influenced by the fallout from falling Korean chipmaker stocks. The steep drop of over 12% in SK Hynix and Samsung Electronics shares the previous day, driven by concerns over potential US interest rate hikes, is analyzed as the catalyst for the broader decline in the US semiconductor sector. Notably, Micron Technology and Sandisk each fell 13%, while AI chipmakers also took significant hits, with Nvidia down 3.50%, TSMC down 6%, and AMD down 6%.

The Philadelphia Semiconductor Index (SOX) plunged over 7%, and the Nasdaq Composite Index also closed down 2.21%, indicating a contraction in investor sentiment across the entire semiconductor sector. Andrew Slimmon, a portfolio manager at Morgan Stanley Investment Management, described the sell-off as a 'healthy correction,' attributing it to an influx of sell orders from investors who had overextended themselves in the short term.