STOCKS | U.S. Chip Stocks Experience Dramatic Reversal Amid Market Volatility

On May 13, U.S. chip stocks faced one of their toughest trading days this year, with some of the best-performing stocks experiencing dramatic reversals. According to Jin10, Broadcom (AVGO.O), Intel (INTC.O), and Micron Technology (MU.O) were among the top five decliners in both the S&P 500 and Nasdaq 100 indices. The Philadelphia Semiconductor Index, which had risen over 60% this year, fell as much as 6.8% intraday, marking its largest intraday drop in over a year, and closed down 3%. Almost all components ended the day lower, with Qualcomm (QCOM.O) leading the declines with an 11.4% drop. Nvidia (NVDA.O) was the only stock to close higher, despite underperforming the sector overall this year. Susquehanna International's co-head of derivatives strategy, Murphy, commented, "The historic rally in chipmakers cannot last indefinitely. This sell-off was overdue after a remarkable rise, but given the market's persistent FOMO sentiment, this pain may not last long."