Semiconductor stocks including Micron, SanDisk, Intel, and Advanced Micro Devices fell sharply in early premarket trading on Friday, extending the previous session's losses. SanDisk declined 6%, leading the pullback, while Micron fell 4.4%, and Intel and AMD each dropped just over 4%. The declines deepened a tech sector rout driven by profit-taking in richly valued chipmakers, rising uncertainty around AI spending, and geopolitical risks. The iShares Semiconductor ETF declined 8.8% through Thursday's close, heading for its worst weekly performance since March 2025, while the broader market also felt pressure with the Invesco QQQ Trust down 2.7% and the SPDR S&P 500 ETF down 0.6%.
Chip Stocks Record Sharp Premarket Declines
The iShares Semiconductor ETF fell 3.6% in premarket trading on Friday. AI-linked companies also declined, with Marvell Technology falling around 4.6% and CoreWeave dropping 3.7%. Marvell designs chips and networking hardware that power AI data centers, cloud computing, telecom networks, and enterprise infrastructure, while CoreWeave is the leading neocloud firm in the U.S.
Tech Rotation Shifts Investor Focus From Semiconductors
A tech rotation is underway, with investors closely watching chip stocks after their slide from June highs, along with daily developments in the U.S.-Iran standoff and the second-quarter earnings season. The current tech rotation is a shift away from high-flying AI chip stocks and toward relatively cheaper Big Tech software and internet names, following an extended semiconductor rally. The move is being driven by profit-taking in richly valued chipmakers, rising uncertainty around AI spending, and geopolitical risks, with many betting that companies such as Microsoft, Apple, Alphabet, and Meta offer a better near-term risk-reward than semiconductor stocks after their massive run-up.
Retail Traders Favor Memory Stocks in Stocktwits Poll
Among the market's hottest themes, retail traders see the memory space as the strongest area to stay invested in. In a Stocktwits poll with about 12,000 votes, 44% said they are most interested in investing in memory stocks, while 29% picked neoclouds such as Nebius and CoreWeave and 27% picked space stocks including Rocket Lab and SpaceX.
The view on Micron remained particularly upbeat. "MU is the only real company on that list, that I own, that is the most profitable critical to AI and is a US company, and the rest are overvalued or not profitable enough or aren't a US company," a trader wrote.
On Stocktwits, retail sentiment was bullish for Micron and SanDisk, while Intel and AMD drew neutral sentiment, with traders looking ahead to Intel's earnings next Thursday, the first major chipmaker to report.
FAQ
Which chip stocks declined the most in Friday's premarket trading?
SanDisk declined 6%, leading the pullback among semiconductor stocks. Micron fell 4.4%, while Intel and Advanced Micro Devices each dropped just over 4%. The iShares Semiconductor ETF fell 3.6% in premarket trading.
What did the Stocktwits poll reveal about retail trader preferences?
In a Stocktwits poll with about 12,000 votes, 44% of retail traders said they are most interested in investing in memory stocks. 29% picked neoclouds such as Nebius and CoreWeave, and 27% picked space stocks including Rocket Lab and SpaceX.
When is Intel scheduled to report earnings?
Intel is scheduled to report earnings next Thursday, making it the first major chipmaker to report second-quarter results.
