Semiconductor Stocks Plunge 8-10% on Tuesday, SOXL Falls Over 20%

On Tuesday (June 23), Micron Technology (MU), Intel (INTC), Advanced Micro Devices (AMD), and other semiconductor stocks plummeted 8-10% in opening trade. The Direxion Daily Semiconductor Bull 3X Shares (SOXL) ETF fell over 20%, while the iShares Semiconductor ETF (SOXX) declined nearly 7%. The tech-heavy Nasdaq Composite was down over 2%, on track for its second-worst single-day performance this month.

Dan Ives, Global Head of Tech Research at Wedbush, dismissed concerns about the selloff, arguing that short-term volatility does not alter the long-term investment case for leading AI companies. Morgan Stanley's Andrew Slimmon termed the pullback "healthy," noting that crowded positions and momentum traders drive sharp selloffs necessary to wash out speculators.