Micron Down 10.6% and Intel Off 9% on Valuation; Meta Surges 8.8%
META•Micron plunged 10.6% and Intel tumbled 9.0% as chip valuations reached multi-year highs and investors feared Meta’s strategic pivot could curb its semiconductor spending. In contrast, Meta shares jumped 8.8% on news of a shift toward AI-driven cloud services, highlighting divergent hardware and software outlooks.
1. Extended Chip Sector Selloff
Micron shares fell 10.6% and Intel dropped 9.0% as investors reevaluated lofty semiconductor multiples after a prolonged rally. Market participants cited concerns that slowing end-market demand combined with high forward earnings multiples were unsustainable without fresh catalyst.
2. Meta’s Shares Jump on Strategy Shift
Meta stock rallied 8.8% as the company signaled a major reorientation toward AI-centric cloud services and software, raising expectations for improved margins. This strategic pivot has investors optimistic about higher-return initiatives, even as it raises questions over future chip procurement levels.
