Gotrade Daily: Chip Selloff Day 2, Micron Earnings Decides The Mood
Rendy Andriyanto
Gotrade Team
Reviewed by Gotrade Internal Analyst
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Semiconductor stocks are falling for a second straight day. The Nasdaq dropped 2.21% on Tuesday, and its futures are down about 2.7% again ahead of tonight's open.
The selloff started in Asia. Korea's KOSPI hit a circuit-breaker, falling as much as 10% intraday, with SK Hynix down 11% and Samsung down 8%. That pressure rolled straight into US chip names.
Tonight brings one catalyst that could set the direction. Micron reports quarterly results after the closing bell, and options are pricing a move of about 14%.
Micron (MU) reports after the close. The company guided to record revenue near $33.5 billion and gross margin around 81%. The market is focused on HBM4 memory demand and Micron's role in Nvidia's Vera Rubin platform. BofA raised its target to $1,500 and Needham to $1,550, both urging investors to ignore today's selloff.
The chip selloff spread from Asia
The trigger was not a single headline, but a sentiment reset after a long AI rally. The SMH semiconductor ETF fell 6.5% on Tuesday. A BofA note flagging rising rate-hike risk added to the pressure.
Nvidia is the counterweight
Inside the rout, Nvidia (NVDA) is holding up relatively well. Morgan Stanley reaffirmed Overweight and lifted its price target to $206 from $200. NVDA's direction early in the session will signal whether this is a healthy dip or the start of deeper pressure.
Nasdaq futures are down about 2.7% ahead of the open. The weakness is broad across chips: AMD and Intel are each down around 6%, while TSM is off about 5% pre-market.
Watch whether that pressure carries into the open, or whether chip names try to bounce before Micron reports.
Macro Note 📝
Oil eased to a three-month low, with WTI near $73 a barrel, after the US and Iran agreed on a 60-day peace roadmap. Gold fell 1.5% to $4,129 and the 10-year Treasury yield held at 4.48%.
Two days of selling have left the market nervous, but the real story unfolds tonight. Micron's report will decide whether AI-demand worries are justified, or whether this is simply profit-taking after a huge rally.
If you hold chip exposure, tonight is a night to watch the post-report reaction, not to panic with the market movements. What stocks are you watching tonight?
Track MU, NVDA, and the rest of the chip group tonight straight from the app. Check Watchlist on Gotrade now!
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
