Micron, SK Hynix stocks sink as AI chip sell-off deepens

Micron, SK Hynix stocks sink as AI chip sell-off deepens Ines Ferré · Senior Business Reporter Updated Tue, July 28, 2026 at 7:46 PM GMT+2 2 min read MU SKHY 005930. KS ASML AMD What happened:  Semiconductor stocks fell on Tuesday, with the PHLX Semiconductor Index ( ^SOX ) falling more than 3% as investors continued to unwind positions in one of the market's hottest AI-driven sectors this year. US-listed shares of memory and storage leaders Micron Technology ( MU ) and SK Hynix ( SKHY ) tumbled more than 8%, while Sandisk ( SNDK ) dropped 13%.

Among the semiconductor equipment makers, ASML ( ASML ), Applied Materials ( AMAT ), and Lam Research ( LRCX ) also dropped. AI chip heavyweight Nvidia ( NVDA ) stock reversed early morning losses to climb into green territory following a 5% drop on Monday. Peer AMD ( AMD ) fell more than 7%.

Chip maker Intel ( INTC ), along with Marvell ( MRVL ) and Qualcomm ( QCOM ), also slid. What's behind the move: The sell-off followed declines in semiconductor stocks abroad. In South Korea, SK Hynix fell more than 14%, while Samsung Electronics ( 005930.

KS ) dropped more than 13%. European semiconductor stocks also moved lower as concerns about circular financing and intensifying competition from China have weighed on the sector. On Monday, Nvidia lost its position as the world's most valuable company to Apple after a report said the AI chip heavyweight was in talks to backstop $250 billion in funding for OpenAI ( OPAI.

PVT ) tied to a major data center project. That report followed a $500 billlion strategic collaboration with the conglomerate SK Group, announced on Friday. Chinese memory maker CXMT's ( 688825.

SS ) blockbuster debut in Shanghai this week also renewed investor concerns that the company's rapid expansion could weigh on memory chip prices. The ChangXin Memory Technologies (CXMT) factory on the outskirts of Beijing is seen on July 27, 2026. (Pedro Pardo/AFP via Getty Images) · PEDRO PARDO via Getty Images Additionally, a report from The Information that a Chinese state-backed company began mass-producing a key piece of chipmaking equipment fueled a sell-off in ASML shares.

What else you need to know: Semiconductor stocks have been at the center of the AI trade this year, helping propel the sector to a record high in June. Since then, chip stocks have tumbled into bear-market territory, falling more than 20% from their highs as investors grow increasingly concerned about hyperscalers' massive AI spending spree. Investors have also become more skeptical about the payoff from billions of dollars in AI infrastructure investments, raising questions about whether the spending will generate adequate returns.

Last week, Alphabet ( GOOG , GOOGL ) stock plummeted after the tech giant announced it would raise its capital spending outlook as it builds out its AI infrastructure. Investors are now awaiting earnings this week from Microsoft ( MSFT ), Amazon ( AMZN ), and Meta ( META ), all of which are expected to announce further increases in AI-related spending. Story Continues Any hint of a slowdown, however, would spell trouble for the companies that make semiconductors and related equipment.

Concerns that the Federal Reserve could resume raising interest rates have also weighed on sentiment. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre .