The chips and AI stocks continue to sell-off. I have a list of names I follow that show various stocks in the industry. It is not meant to be all-inclusive, but it has a sampling. Admittedly, if I took a snapshot of the same stocks month or 2 months ago, the reverse would be in play. Most of the names on this list have outpaced the market. Throw out Nvidia and Broadcom, the worst performers on the list are still up about 24% with SanDisk still up 332%, Arm up 111%, AMD up 100%, Micron up 174%, Intel up 126%.
Below is a snapshot of the performances today. All but three are down over 2% outpacing the declines in the Nasdaq (-1%) and the Nasdaq 100 (-1.03%).
- Nebius Group: $155.21, -14.48 (-8.53%)
- KLA Corporation: $175.88, -14.92 (-7.82%)
- SanDisk: $1,020.95, -73.15 (-6.67%)
- Coherent Corp.: $227.83, -15.50 (-6.37%)
- Lumentum Holdings: $611.77, -40.16 (-6.16%)
- Arm Holdings: $230.77, -13.98 (-5.71%)
- Credo Technology Group: $181.31, -10.97 (-5.71%)
- Applied Materials: $451.83, -24.63 (-5.17%)
- Advanced Micro Devices (AMD): $433.52, -21.10 (-4.64%)
- Micron Technology: $784.68, -35.85 (-4.37%)
- Lam Research: $258.55, -11.06 (-4.10%)
- Arista Networks: $162.72, -6.99 (-4.12%)
- Marvell Technology: $168.36, -6.11 (-3.50%)
- Astera Labs: $251.34, -8.89 (-3.42%)
- Taiwan Semiconductor Manufacturing (TSMC): $379.39, -12.92 (-3.29%)
- VanEck Semiconductor ETF (SMH): $513.36, -16.24 (-3.07%)
- GE Vernova: $919.85, -23.53 (-2.49%)
- NVIDIA: $192.21, -4.80 (-2.44%)
- Texas Instruments: $270.70, -6.37 (-2.30%)
- Intel: $84.44, -1.86 (-2.16%)
- ASML Holding: $1,551.21, -31.74 (-2.01%)
- Monolithic Power Systems: $1,264.12, -17.89 (-1.40%)
- Broadcom: $376.31, -4.60 (-1.21%)
- Cisco Systems: $115.65, +0.07 (+0.06%)
The declines seen today mirror the declines seen since mid June. Below is the same list with the all time highs reached.
- Nebius Group $299.86
- KLA Corporation $307.37
- SanDisk $2363.85
- Coherent Corp. $440
- Lumentum Holdings $1085
- Arm Holdings $452.70
- Credo Technology Group $308.67
- Applied Materials $739.67
- Advanced Micro Devices (AMD) $584.73
- Micron Technology $1264.11
- Lam Research $438.50
- Arista Networks $189.82
- Marvell Technology $329.61
- Astera Labs $499.48
- Taiwan Semiconductor Manufacturing (TSMC) $479.00
- VanEck Semiconductor ETF (SMH) $671.83
- GE Vernova $1195.94
- NVIDIA $236
- Texas Instruments $334.03
- Intel $142.35
- ASML Holding $1999.96
- Monolithic Power Systems $1714.09
- Broadcom $495
- Cisco Systems $130.37
Looking at the changes from a $ and % terms, here is the results over the last month or so
The positive takeaway is that, despite the recent selloff, many of these stocks continue to outperform the broader market as the AI revolution remains a powerful long-term theme. The less encouraging news is the magnitude of the declines from their “bubble highs,” and the possibility that the correction is not yet complete given just how far many of these names had run.
I don’t know whether this ultimately proves to be the bursting of an AI bubble or simply a healthy correction within a longer-term uptrend. However, with the Nasdaq and Nasdaq 100 both threatening to test their 100-day moving averages, traders need to respect the downside risk if selling momentum continues to build.
My focus has always been on managing risk rather than predicting the future. After the extraordinary gains many of these stocks enjoyed, the sharp pullbacks over the past few weeks have certainly raised the temperature for investors. Some will argue this is simply the price of taking profits after an exceptional run, while others will see it as the beginning of something more significant. Time—and price action—will ultimately provide the answer.
This article was written by Greg Michalowski at investinglive.com.
