Semiconductor stocks extended last week's slide on Monday, with Micron and Intel leading the retreat even as broader indices climbed. The Philadelphia Semiconductor Index slipped about 1.2% in early trading as investors rotated out of chip names.
Chip stocks kept falling on Monday, with Micron shares down more than 3% in morning action and Intel off roughly 2%. The two names led the semiconductor sector lower, extending a selloff that began the previous week.
Chips lag a higher market
The retreat stood apart from the rest of the tape. Broader market indices traded higher by mid-morning, helped by a de-escalation in U.S.-Iran tensions, yet chip stocks stayed under pressure.
The Philadelphia Semiconductor Index slid about 1.2% in early trading. Other chip names, including Advanced Micro Devices and Marvell Technology, also traded in the red, even as easing geopolitical concerns lifted the wider market.
Profit-taking after a strong run
Investors appeared to rotate out of chip names following a strong run in the sector. Some analysts suggested profit-taking may be driving the pullback.
Micron's decline followed a sharp drop on Friday after the memory chipmaker reported earnings that failed to impress investors. The company has been under pressure amid concerns about oversupply in the DRAM market and softening demand from PC and smartphone makers.
Source: GuruFocus
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