U.S. Stock Market Movement | Chip stocks broadly decline, Sandisk falls over 8%
Complete. Here is the key summaryOn Tuesday, chip stocks broadly declined, with SanDisk falling over 8%, Intel and Advanced Micro Devices dropping more than 7%, Western Digital and Micron Technology nearly 7%, Seagate Tech over 5%, ASML over 4%, Taiwan Semiconductor over 3%, and Qualcomm, Broadcom, and NVIDIA each down over 1%. In the news, during the Asia-Pacific trading session, South Korean chip giants Samsung Electronics and SK Hynix both plummeted over 6%. Analysts believe that despite Samsung Electronics' operating profit in the second quarter soaring more than 18 times year-on-year, the stock price significantly fell, reflecting deep market concerns about whether the AI-driven rally can be sustained. Meanwhile, several Wall Street firms have warned that the current U.S. stock market not only has a price bubble but also hides an earnings bubble. If corporate earnings growth expectations are revised to historical normal growth rates, the valuation of the S&P 500 index will soar to a price-to-earnings ratio of 67.6 times
According to Zhitong Finance APP, on Tuesday, chip stocks fell broadly, with Sandisk (SNDK.US) down over 8%, Intel (INTC.US) and Advanced Micro Devices (AMD.US) down over 7%, Western Digital (WDC.US) and Micron Technology (MU.US) down nearly 7%, Seagate Technology (STX.US) down over 5%, ASML (ASML.US) down over 4%, Taiwan Semiconductor (TSM.US) down over 3%, Qualcomm (QCOM.US), Broadcom (AVGO.US), and NVIDIA (NVDA.US) down over 1%.
In terms of news, during the Asia-Pacific trading session, South Korean chip giants Samsung Electronics and SK Hynix both fell over 6%. Analysts believe that despite Samsung Electronics' operating profit in the second quarter soaring more than 18 times year-on-year, the stock price has significantly declined, reflecting deep market concerns about whether the AI-driven market trend can be sustained.
At the same time, several Wall Street institutions have warned that the current U.S. stock market not only has a price bubble but also hides an earnings bubble. If corporate earnings growth expectations are revised to historical normal growth rates, the valuation of the S&P 500 index will soar to a price-to-earnings ratio of 67.6 times