Marvell, Micron tumble as chip sector posts worst day in six years
MarketWatch reports the semiconductor index posted its sharpest single-day drop in six years, with Marvell and Micron leading double-digit declines. Investors are starting to question whether AI capital spending can be sustained at current levels.
According to MarketWatch, the Philadelphia Semiconductor Index fell more than 7% in a single session, the steepest decline since late 2019. Marvell Technology shares lost about 17% and Micron Technology fell roughly 14%, with the selloff dragging Nvidia, AMD and Broadcom lower as well.
Analysts cited growing doubts over whether the hundreds of billions of dollars in AI infrastructure spending planned by big tech firms over the next several years can deliver adequate returns. Recent notes from Goldman Sachs and Morgan Stanley flagged the risk of oversupply in memory and custom-chip markets. Investors were also reminded that stretched valuations can lead to sharp corrections on even modest disappointments.
Lingering uncertainty about how aggressively the Federal Reserve will cut rates before year-end added further pressure on tech-heavy indexes. Some portfolio managers said the pullback offered a logical moment to take profits, while others pointed to still-strong earnings and characterised the move as a sector rotation rather than a fundamental shift. This is not investment advice.
More from North America
Chinese EVs may reach the US within a few years, one way or another
A CNBC analysis argues that despite steep tariffs, Chinese carmakers will likely enter the US market within a few years by assembling vehicles in Mexico or Canada. Price pressure on Tesla, Ford and General Motors appears unavoidable.
Anthropic co-founder calls for halting AI development without human oversight
Anthropic co-founder Jack Clark told the BBC that AI development must not continue without humans in control, warning of escalating risks. The company released a policy framework calling for coordinated industry-wide pauses if specific safety thresholds are crossed.
Nasdaq falls 4% in worst day since April 2025 as traders flee chip stocks
The Nasdaq Composite fell 4% in its worst session since April 2025 as investors dumped chip stocks on concerns about AI-related valuations and renewed rate worries from May payrolls. Nvidia, AMD and Micron led the slide as the broader index rotation accelerated.