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Shares of memory chipmaker Micron Technology (MU) tumbled 12% as a chip sell-off deepened on Thursday.
Peer SK Hynix (SKHY), along with memory and storage names Sandisk (SNDK), Seagate (STX), and Western Digital (WDC) were all down double-digit percentages during the session.
Shares of Micron and other chip stocks declined significantly over the past month amid growing worries of an overextension of the AI trade. The sell-off gained steam on Thursday after Democrats won control of both the House and Senate, raising concerns about a slowdown in data center buildouts.
AI chipmakers Nvidia (NVDA) and AMD (AMD) sank 6% and 13%, respectively, on Thursday. Broadcom (AVGO) also sank 6%.
The carnage among chipmakers was across the board, as seen on Yahoo Finance’s AlphaSpace chart.
The PHLX Semiconductor Index (^SOX) sank 8%, leading the Nasdaq Composite lower.
