Chip rally cracks as AI hype cools — short the semiconductor hangover
The massive AI rally that drove huge gains in chip stocks like Micron during the second quarter has completely stalled out. Now, Korean chip giants Samsung and SK Hynix are cratering alongside massive losses in the biggest tech companies as investors worry AI spending has gotten out of hand.
Idea
The same AI spending concerns that erased $2.3 trillion from the largest tech stocks in June are now actively infecting the semiconductor suppliers that powered the market's best quarter in six years. We saw Micron wipe out $200 billion in value overnight, and the panic has officially spread to Asia with Samsung and SK Hynix dropping over 7%. This combination of fading enthusiasm for AI investments and technical momentum breaking down suggests the chip sector has further to fall before stabilizing.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| AMD | SHORT | +0.00% ✗ | +0.00% ✗ | — |
Price change since publication · updated Jul 11