AI-fuelled chip stock rally hits speed bump despite record quarterly gains

AI-fueled semiconductor stocks including Micron, Intel, AMD, and Sandisk faced a sharp correction in late June 2026 despite being on track for record quarterly gains, with the Philadelphia Semiconductor Index plunging 7.9% last week — its worst weekly decline since April 2025. Growing investor concerns over elevated valuations, sustainability of aggressive AI capex by tech giants, expectations of a potential US Fed rate hike, and reports of a possible delay to OpenAI's IPO triggered the global tech sell-off. The semiconductor index nonetheless remains up 81% in Q2 and 94% YTD in 2026, with NVIDIA leading at approximately $4.5 trillion market cap and SK Hynix reportedly seeking to raise $29.4 billion via a US listing.