Technology stocks fell in premarket trading Thursday, with chipmakers Broadcom, Micron Technology and Marvell Technology leading the losses as investors fled the semiconductor space.
Broadcom shares were down 15.1% ahead of the market open after the company, which designs and makes customized AI chips for other technology names, reported weaker-than-expected earnings on Wednesday.
Broadcom.
The fall was part of a broader retreat from chipmakers and other tech stocks ahead of Thursday’s market open.
Micron Technology was down 7.1% in premarket trading, while Marvell Technologies had fallen 7.5%.
Elsewhere, Qualcomm shed 3.9%, with Intel falling 4.1%, and AMD down 4.3% ahead of the opening bell.
Futures tied to the tech-heavy Nasdaq were last seen 1.4% lower.
AI memory chips have been a key theme in the equity market rally in recent weeks. Thursday’s retreat led equities markets lower, with the S&P 500 futures last seen 0.7% down.
In a note Thursday, HSBC analysts led by Max Kettner, chief multi-asset strategist, flagged a slide in chip prices, coupled with a slowdown in AI spending and rollout, as among their “biggest worries.”
Keith Lerner, CIO and chief market strategist at Truist Wealth, said that a sell-off was normal after a strong run, adding that “we’re due for a rest.”
“We’ve come a long way. Fundamentals are solid,” he saidon CNBC’s “Closing Bell” on Wednesday.
“Bull market still deserves a benefit of the doubt, but often markets are two steps forward, one step back. We’ve had three steps forward, so maybe at least a mini step back, or at least some sideways chop.”
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