US Chip Stocks Tumble as Investors Take Profits After Blockbuster Quarter

US semiconductor stocks sold off sharply in the days before the Independence Day holiday, as investors took profits following an extraordinary run. The PHLX Semiconductor Index fell about 6.7% in a single session, after the group had roughly doubled during the second quarter on enthusiasm for artificial intelligence infrastructure. Several marquee names bore the brunt of the pullback, with Micron Technology, Applied Materials, Lam Research and Sandisk each dropping around 10%, and Intel and Marvell falling roughly 9%. The retreat highlighted growing questions about whether the AI-driven investment boom can continue to justify stretched valuations, or whether the trade has become crowded and vulnerable to sharp reversals. The declines came amid a broader stretch of volatility that also saw oil prices slide, with US crude drifting down toward the high-$60s and off nearly 20% over two weeks as tensions in the Middle East eased. For a market that has leaned heavily on chipmakers to power record highs, the episode served as a reminder of how quickly sentiment in the sector can shift.