Intel and Micron shares slide as chip sector selloff erases $1.3 trillion in value

The semiconductor sector is having a rough summer. Intel and Micron are leading a broad-based chip selloff that has carved roughly $1.3 trillion off the sector’s market value at its worst point, even as the rest of the tech landscape holds relatively steady. The PHLX Semiconductor Index surged 92% heading into early June 2026. Now the bill is coming due. What triggered the rout The dominoes started falling around June 4, when Broadcom delivered an AI chip forecast that landed well below Wall Street’s expectations. Intel and Micron both dropped more than 7% in the immediate aftermath. By July, Intel shares had cratered more than 20% from their pre-selloff levels. The Philadelphia Semiconductor Index fell as much as 10.8%. Micron became the poster child for volatility in the memory chip space. The stock swung between 6% and 13% declines across multiple trading sessions from June into July, often dragging competitors like SK Hynix and Samsung along for the ride. The AI capex question nobody wants to answer At the heart of the selloff sits a number: $650 billion. That’s the projected capital expenditure for AI-related infrastructure, representing a 67% year-over-year increase. Broadcom...