Chip stocks fall after record second-quarter rally

Semiconductor shares dropped sharply at the start of the third quarter after a strong run in the previous three months. Micron, Intel and AMD all declined on July 1, even though each had been among the biggest winners in the second quarter. The article says the three companies added about $2 trillion in combined market value in the second quarter as investors bet that artificial intelligence buildouts would drive demand for more memory and central processing chips, not just graphics processors. The VanEck Semiconductor ETF also fell after posting its best quarter on record. The pullback came alongside concerns that AI infrastructure supply may be catching up with demand, following a report that Meta may look to rent out excess computing capacity. Still, the companies’ recent earnings results remained strong, with Micron reporting sharp revenue growth and higher gross margins in its latest quarter.