US semiconductors plummet as Democratic sweep, earnings prompt trade unwind

Micron Technology

05/11/2026 17:02

Updates
** US semiconductor stocks extend declines from Wednesday, with the broader chips index .SOX down 9%
** At a point, it plunged over 11%, and was set for its worst day since March 2020 and to shed over $1 trillion in value 
** Qualcomm QCOM.O slid 11.2% after Q4 chip sales missed estimates, while ARM ARM.O dropped 11% despite beating Q3 earnings estimates 
** Shares of AI chipmaker Nvidia NVDA.O tumble 6.7% 
** Networking chipmakers Broadcom AVGO.O and Marvel Technology MRVL.O slide 6.8% and 11.6%, respectively
** Advanced Micro Devices AMD.O and Intel INTC.O, which make chips for personal computers, servers and AI chips, drop 13% and 4%, respectively
** Memory chipmaker Micron Technology MU.O slumps 12.2% while data storage cos Western Digital WDC.O and Sandisk SNDK.O slide 16% each
** Stocks wobbled on Wednesday after a Democratic sweep in midterm elections stoked fears of stricter data center regulations, potential limits on AI infrastructure expansion
** Mix of the election result and some disappointing tech earnings tipped markets over the edge, and a large number of crowded and leveraged trades were unwinding, said Jakub Rochlitz, market analyst at eToro
** The chips index is up 31% YTD, including session's losses, and is well off highs touched this year

 (Reporting by Jayasree Prabhu and Purvi Agarwal)
 ((jayasree.prabhu@thomsonreuters.com))