India, July 2 -- Semiconductor stocks fell sharply on Wednesday, July 1, 2026, as investors booked profits after a massive AI-driven rally. Major chipmakers like Micron Technology (MU), AMD, and Intel (INTC) saw declines, while semiconductor ETFs such as SMH and SOXX also dropped more than 5%.

Why Are Chip Stocks Down Today?

Chip stocks are falling mainly due to profit-taking after a historic rally in the semiconductor sector. Over the first half of 2026, AI-driven demand pushed chip stocks to record highs, with semiconductor ETFs gaining between 70%-100%.

Key reasons behind today's decline:

The semiconductor rally had become one of the most crowded trades in the market, making it vulnerable to sudden pullbacks.

Why are Micron Stocks...