Micron, Intel Lead Chip Recovery, Adding Nearly $250 Billion as Most of Wall Street Falls: Chart of the Day

Last week, chip stocks helped push Wall Street lower. On Monday, they raise the indices while most stocks continue to fall.

A Yahoo Finance basket of 60 chip-related stocks recaptures nearly $250 billion in market value, with gains hitting memory makers, chip designers and equipment suppliers.

Micron (MU) and Intel (INTC) are each gaining more than 2%, while Sandisk (SNDK) is up almost 5%. AMD (AMD), Nvidia (NVDA) and Western Digital (WDC) are joining the rebound.

Nearly 90% of stocks in the chip basket are higher. Of the entire S&P 500, about 70% is down, according to Yahoo Finance calculations.

The equal-weighted S&P 500 ETF (RSP) is lower even as the main index advances, showing how much the overall rally depends on a relatively small group of winners.

Many of these buyers are returning to familiar territory.

Micron and Sandisk lost about 15% and 18%, respectively, last week as memory stocks entered a new bear market. Both helped fuel the spring rally from March lows, as hopes grew for a ceasefire between the United States and Iran.

This prior leadership manifests itself beyond individual chip names. Among the 100 best-performing stocks in the S&P 500 between March 30 and June 2 – the first big rise after war headlines faded – 61 were up Monday. Among the lowest 100, 84 are declining.

Intel also has a new catalyst. JPMorgan upgraded it from underweight to neutral, citing opportunities related to AI demand and chip shortages, as Yahoo Finance’s Brian Sozzi reports.

The rebound is being greeted more harshly elsewhere in the AI ​​sector.

CoreWeave (CRWV) gave up most of its premarket gains despite Goldman Sachs upgrading to Buy. The cloud provider’s financing needs were the focus of last week’s sales.

Semiconductor stocks have also fallen since the open. For chip buyers, the PHLX Semiconductor Index (^SOX) would ideally close above 11,500 today and must hold the 11,000-11,100 zone to avoid further washout.

In-house AI tools helped analyze interview transcripts, research, and write this article. Humans reviewed, edited and fact-checked the material before publication.

Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.

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