Semiconductor stocks tumble up to 6.5% as oil surge revives inflation fears

  • Semiconductor shares fell broadly as investors took profits amid higher energy costs and inflation concerns.
  • 6.5% was Intel's decline, the steepest among the listed chip stocks.
  • The Federal Reserve meets September 15-16 after Friday's Consumer Price Index release.

Semiconductor shares fell broadly on Thursday as Brent crude climbed above $105 a barrel and hotter-than-expected producer inflation increased concern that the Federal Reserve may need to raise interest rates again. Losses ranged from about 2.6% to 6.5%, led by SK Hynix, which dropped 6% to an intraday low of $187 after reaching a record $191 the previous session. Micron Technology fell 4.2% to $982, Advanced Micro Devices declined 3% to $504, Intel lost 6.5% to $99.34 and Nvidia slipped 2.6%. SanDisk fell 4% but remained up 8.5% for September. The August Producer Price Index (measure of wholesale price changes) rose 0.4% from July and 5.4% from a year earlier, while the core index increased 0.2% monthly and 4.6% annually. The data heightened attention on Friday's Consumer Price Index release and the Federal Reserve's September 15-16 policy meeting. Higher Treasury yields, with the 10-year rate around 4.8%, have reduced the appeal of high-growth technology shares whose valuations rely on long-term AI and data-center expansion. Analysts remain positive on Micron, AMD and Nvidia, which have Strong Buy consensus ratings, while Intel is rated Hold. The pullback currently appears linked to macroeconomic pressure and profit-taking rather than a fundamental deterioration in AI chip demand.

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