Shares of semiconductor fall premarket
Shares of semiconductor companies fell in premarket trading on June 23, 2026, amid ongoing uncertainty in global markets and shifting investor sentiment. The decline follows a volatile week for the sector, marked by a sharp sell-off in chip stocks and broader tech indices. The Nasdaq Composite, heavily weighted with semiconductor names, closed at 25,709.43 on June 5, reflecting a 4.18% drop for the week, its largest decline since early 2025.
The recent downturn was triggered by a combination of factors, including a weaker-than-expected AI chip outlook from Broadcom, a spike in Treasury yields following a stronger-than-anticipated jobs report, and concerns about economic slowdowns. The iShares Semiconductor ETF (SOXQ) dropped 10% on June 5, marking its worst day since March 2020. Despite this, the ETF remains up 79% year to date, reflecting the sector’s strong performance over the past year.
Micron Technology, a key player in the memory chip market, saw its shares fall 13% on June 5 after a two-day decline that erased gains made earlier in the year. Similarly, Advanced Micro Devices (AMD) and Intel fell around 11%, while Marvell Technology dropped more than 16%. The sell-off was not limited to U.S. markets; South Korea’s Kospi index fell 5.54%, with Samsung and SK Hynix dropping 6.40% and 9.92%, respectively.
Investors are also closely watching developments in the U.S.-Iran peace talks, which have provided some relief in recent sessions but remain fragile. Additionally, the upcoming SpaceX IPO, expected to raise $85 billion, has prompted investors to rotate out of semiconductor and tech stocks to reallocate capital.
Despite the recent volatility, long-term demand for AI infrastructure and data center expansion continues to drive optimism in the sector. UBS raised its S&P 500 year-end price target to 7,900, citing "insatiable demand for data center infrastructure" as a key driver of upward earnings revisions. However, analysts caution that the sector’s performance will depend on interest rate policies and geopolitical stability.
