Chip stocks selloff extends on valuation, Meta’s pivot fears

Price Action

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Summary · why it matters

The selloff in U.S. chip shares extended into Thursday's premarket trading as lofty valuations and heavy AI spending by tech companies weigh on investor sentiment. Shares in Micron and Western Digital fell about 2.1% each, while Coherent and Marvell Technology shed about 2% and 1.8%, respectively. AMD, Intel and Microchip Technology also edged about 1% lower. The moves followed a Wednesday session in which an index of semiconductors ended 6.3% lower, with Micron falling as much as 10.6% and Applied Materials, Lam Research, Allegro MicroSystems and Intel each dropping more than 9%. Meta Platforms was an outlier, its shares rallying 8.8% after Bloomberg News reported the company is building a cloud business to sell excess AI computing capacity, potentially generating revenue on unused capacity amid plans to spend as much as $145 billion on capital expenditures this year.