Chip Stocks Slide Up to 11% as Meta Report Fuels AI Demand Catch-Up Fears
Updated
Updated · CNBC · Jul 1
Chip Stocks Slide Up to 11% as Meta Report Fuels AI Demand Catch-Up Fears
3 articles · Updated · CNBC · Jul 1
Summary
Micron sank 11%, Intel fell 9% and AMD lost 7% on Wednesday as chip stocks opened the third quarter with a sharp selloff after a blockbuster spring rally.
A report that Meta may rent out excess AI computing capacity raised fears that processing supply is starting to catch up with demand, pressuring memory, processor and chip-equipment names.
The VanEck Semiconductor ETF dropped more than 5% a day after capping its best quarter ever, up 71% since April; Lam Research, KLA and Applied Materials each fell at least 10%.
Meta jumped more than 9% on the report, with KeyBanc saying the move could speed returns by pushing it further into enterprise AI services.
The pullback came despite strong recent chip results: Micron last week reported revenue more than quadrupled and gross margin surged to 84.9% from 39% a year earlier.