The semiconductor sector experienced a significant sell-off on Tuesday, with SanDisk Corp. (SNDK.US) shares down over 12%.
Micron Technology (MU.US) fell nearly 12%, while Seagate Technology PLC (STX.US), Western Digital (WDC.US), and Qualcomm (QCOM.US) each dropped more than 8%.
ASML Holding NV (ASML.US) declined over 7%, and Intel (INTC.US) fell more than 6%.
Advanced Micro Devices (AMD.US) and Taiwan Semiconductor Manufacturing (TSM.US) were down over 5%, with NVIDIA (NVDA.US) falling more than 3% and Broadcom (AVGO.US) losing over 2%.
The sell-off coincided with a global market downturn on June 23rd, described by some as a "Black Tuesday."
South Korea's KOSPI index fell nearly 10%, led by a more than 12% plunge in SK Hynix, a key player in the AI investment boom.
Japan's Nikkei 225 index dropped 3.55%, ending an eight-session winning streak.
Commenting on the situation, Andrew Slimmon, a senior portfolio manager at Morgan Stanley Investment Management, noted on Monday that AI-related stocks are facing selling pressure.
"I don't think they are expensive, but positioning is very crowded," Slimmon said. "They have become the momentum trade, and when that happens, you get a sharp correction like this. I actually think it's healthy."
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