Chip Stocks Experience Rout on July 2, with Intel Down 6% and Marvell Down 10.31%

Multiple chip stocks declined in value on July 2, 2026. Intel's stock fell 6%, while Marvell Technology dropped 10.31%. These declines were also influenced by a rout in chip stocks, with SanDisk, Micron, AMD, and Intel experiencing drops of up to 14%.

Chip stocks sold off sharply on July 2, 2026, with INTC shares falling as much as 6% intraday and MRVL tumbling 10.31%, breaking below its closely watched $250 support level . The decline extended a two-day rout that also hit SanDisk, Micron and AMD, with a broad index of semiconductor stocks falling as much as 6.3% at its worst point.

The proximate trigger traced back to South Korea, where a local report that SK Hynix is slowing its AI memory (HBM) expansion in favor of cheaper commodity DRAM sent the KOSPI down roughly 10% and briefly halted trading, with SK Hynix and Samsung both down more than 10% before the selloff spread to US chipmakers. Compounding the move, a Citi analyst warned that hyperscalers may struggle to justify continued AI infrastructure spending without demonstrating returns, and reports that META plans to resell access to its own AI computing capacity stoked fears of looming overcapacity across the sector .

The selloff also came against a more hawkish rate backdrop: odds of a second Fed rate hike in 2026 rose to roughly 85% from about 60% under new Fed Chair Kevin Warsh, adding pressure to high-multiple, growth-oriented chip names. Investors should watch whether SK Hynix's next update corroborates the reported HBM-to-DRAM mix shift, and whether INTC and MRVL can stabilize once markets reopen after the Independence Day holiday.