Chip Stock Slide Sends Alphabet Shares Lower After Micron’s 4.8% Drop
GOOG•Pre-market Nasdaq 100 futures declined over 1% as memory chip maker Micron Technology plunged 4.8% after a sharp rally lifted chip stocks. Hyperscalers including Alphabet and Amazon slipped while Intel and AMD each fell more than 3% and Nvidia slid 1.4%.
1. Market Futures Retreat
Nasdaq 100 E-mini futures were down 1.16% as chip stocks resumed losses following Micron’s surprising 4.8% premarket decline. The move reversed much of Thursday’s rally and weighed on expectations for technology-heavy indices at the open.
2. Chip Sector Pressure
Memory and semiconductor names underperformed after investors questioned lofty AI-driven valuations despite recent gains. Intel and AMD each dropped over 3%, while Nvidia slid 1.4%, extending a pullback from multi-month highs.
3. Impact on Hyperscalers
Large cloud and data-center operators, led by Alphabet and Amazon, saw share prices dip on concerns that heavy infrastructure spending may take longer to boost profits. The sector’s volatility highlights sensitivity to memory and component cost shifts.
4. Fed Outlook and Market Context
Traders are pricing in a 25-basis-point Federal Reserve hike later this year, keeping rate uncertainty on the radar. The broader S&P 500 held near flat as gains in industrials and materials offset technology losses.
