Qualcomm, Micron, Sandisk, and AMD stocks sink, leading chip sector lower

Chip stocks plummeted on Thursday, extending declines from the prior session, with Qualcomm (QCOM), Micron Technology (MU), Sandisk (SDNK), and AMD (AMD) falling by double-digit percentages. Despite a broader market rally on Wednesday following Democrats’ midterm election victory, semiconductor stocks moved lower amid the threat that stricter regulation could slow data center construction.

Semiconductor stocks, which drove the AI trade higher this year, have been volatile since the summer. The PHLX Semiconductor Index (^SOX) fell by 12%, trimming the index’s year-to-date gains to roughly 25%.

The declines were led by Qualcomm, which issued an underwhelming profit forecast, signaling that higher-cost components are weighing on the smartphone processor maker.

Shares of Arm Holdings (ARM) also fell 13% after the chip designer issued revenue guidance that, while slightly above consensus, failed to impress investors who priced in a higher range amid the AI boom.

Micron Technology stock also declined after the memory chipmaker paused plans for a Taiwanese plant due to labor disputes. Sandisk slid 22%, extending declines from 7% in the prior session.

SK Hynix (SKHY) also declined after shares of the South Korean memory maker tumbled overseas, alongside Samsung Electronics (005930.KS).

At the same time, shares of US chipmaker Intel (INTC) declined about 10%, while AMD plunged 17%. Nvidia (NVDA) also extended declines from the prior session.