Nasdaq falls as AI, chip and memory stocks extend global selloff

U.S. and global technology stocks sold off sharply on June 23, with losses concentrated in AI-linked, semiconductor, storage and memory names, before South Korea’s chip-heavy KOSPI attempted an uneven rebound the next day. Reuters said the Nasdaq fell 2.2% and the S&P 500 lost 1.4% in the latest U.S. session, while SanDisk and Micron each dropped more than 13% as investors cut exposure to crowded chip and AI trades. The retreat was tied to expectations of two more Fed rate hikes this year, concern over whether heavy AI spending will translate into profits, and caution ahead of Micron Technology’s earnings on Wednesday. Earlier in the move, Reuters said the semiconductor index dropped 7.9% as investors unwound crowded AI-related positions, while Goldman Sachs described the selloff as orderly de-risking rather than a disorderly break, citing South Korea’s earlier slump, leverage, investor flows, caution ahead of Micron’s results and the possibility of about $40 billion in month-end U.S. pension selling. Nvidia fell 4.1%, Tesla lost 5.8%, Qualcomm dropped 8%, Marvell slid 9.4%, SanDisk fell 14% and Western Digital declined 8.5%. On the following day, South Korean chipmakers initially rebounded, with Samsung Electronics rising more than 9% and SK Hynix gaining 2.7%, but the KOSPI lost momentum by midday after suffering what Reuters described as the fifth-biggest selloff in its history a day earlier. BNY said signs were emerging that the retail-investor buying behind the market’s run was starting to fade, especially after the regulator turned cooler on popular leveraged ETF products. Investors remained focused on Micron’s results for clues on chip-sector fundamentals, including the durability of AI-driven demand, potential long-term supply deals and upfront customer payments, while Bank of America’s June survey showed 80% of fund managers viewed long semiconductors as the most crowded trade.