Micron Technology shares fell 11% on Wednesday, erasing approximately $138 billion in market capitalization and leading a broad selloff across the semiconductor sector.
The steep decline marks a volatile start to the third quarter for chip stocks, which had just closed out a record-breaking second quarter on Wall Street.
The sell-off in Micron, which surged more than 240% during the previous three months, underscores growing investor caution regarding the sustainability of the artificial intelligence-driven rally.
The sell-off in Micron, which surged more than 240% during the previous three months, underscores growing investor caution regarding the sustainability of the artificial intelligence-driven rally.
While the broader semiconductor complex had enjoyed a broad-based advance, the sharp reversal in the memory maker suggests that profit-taking is intensifying as traders reassess valuations at these elevated levels.
This move follows a cautious start to the quarter for US equities, with the S&P 500 and Nasdaq Composite dipping in early trading on Tuesday.
The headwinds facing semiconductor equities toward the end of the second quarter have now carried over into July, as market participants grow increasingly wary of potential volatility in the tech-heavy indices.