Broad sell-off hits major chip stocks as SanDisk loses over half its market value in July

Stock News07-28 22:33

Popular chip stocks experienced a broad decline on Tuesday, with Micron Technology (MU) falling over 12%, SanDisk Corp. (SNDK) dropping more than 17%, and its market value having halved from its July peak; SK hynix (SKHY) slumped nearly 10%, Taiwan Semiconductor Manufacturing (TSM) fell over 4%, and NVIDIA (NVDA) declined more than 1%.

Market participants are bracing for a "live" Federal Reserve policy meeting on Wednesday, where rates are not pre-determined and the probability of a hike sits at 35%, alongside a slate of major tech company earnings reports due after Wednesday's close and on Thursday. The convergence of these events has dampened risk appetite across the board.

On the news front, media reports indicate that NVIDIA is in discussions to provide a $250 billion financial guarantee for a data center project OpenAI plans to build in Ohio, and may further finance the purchase of the chips needed for the facility, with the potential additional scale reaching $350 billion. This development has intensified market unease over the massive capital expenditures by large technology companies on data centers, chips, and computer memory.

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