Wall Street mostly ignored last week's tech wreckage Monday, but chip stocks continued their descent. The sector shed over $400 billion in market value in a single session, with Intel (INTC) leading the decline. The chipmaker fell another 9%, its worst day since 1974, leaving it worth less than half its September value.
The sell-off spread to Micron (MU), Sandisk (SNDK), Seagate (STX), and Western Digital (WDC), all down 6% to 8%. Marvell (MRVL) dropped sharply amid a $115 billion Lumentum (LITE) acquisition. Nvidia (NVDA) held up better but remains down 16% since October 6.
Since October 6, chip and memory stocks have lost approximately $3.7 trillion in market value. While Nvidia lost the most in dollar terms, Intel's nearly 50% drop is the steepest among giants. SpaceX (SPCX) rose, but software was mixed, with cybersecurity firms Fortinet (FTNT) and CrowdStrike (CRWD) falling alongside chips.
Adam Johnson of the Bullseye Brief believes the worst is already priced in, stating, "The market kitchen-sinked it... typically that's when you see a bottom." John Chambers, former Cisco CEO, expects widening gaps between winners and losers, saying, "There will be major train wrecks... I would not bet against Nvidia." Jeff Hirsch, editor of Stock Trader's Almanac, bought the sell-off on October 30, citing historical trends. Chips have climbed in all eight midterm cycles since 1994, though they fell another 11% in 2002 and 2018 before recovering.
AMD (AMD) reports Q3 results Tuesday, alongside the midterm vote.
Source: Hacker News · Summarized by HeadlinesBriefing