Micron, Marvell, and Broadcom lead chipmakers’ premarket losses

Technology stocks fell in premarket trading Thursday, with chipmakers Broadcom, Micron Technology and Marvell Technology leading the losses as investors fled the semiconductor space.

Broadcom shares were down 15.1% ahead of the market open after the company, which designs and makes customized AI chips for other technology names, reported weaker-than-expected earnings on Wednesday.

The fall was part of a broader retreat from chipmakers and other tech stocks ahead of Thursday’s market open.

Micron Technology was down 7.1% in premarket trading, while Marvell Technologies had fallen 7.5%.

Elsewhere, Qualcomm shed 3.9%, with Intel falling 4.1%, and AMD down 4.3% ahead of the opening bell.

Futures tied to the tech-heavy Nasdaq were last seen 1.4% lower.

AI memory chips have been a key theme in the equity market rally in recent weeks. Thursday’s retreat led equities markets lower, with the S&P 500 futures last seen 0.7% down.

In a note Thursday, HSBC analysts led by Max Kettner, chief multi-asset strategist, flagged a slide in chip prices, coupled with a slowdown in AI spending and rollout, as among their “biggest worries.”

Keith Lerner, CIO and chief market strategist at Truist Wealth, said that a sell-off was normal after a strong run, adding that “we’re due for a rest.”

“We’ve come a long way. Fundamentals are solid,” he said on CNBC’s “Closing Bell” on Wednesday.

“Bull market still deserves a benefit of the doubt, but often markets are two steps forward, one step back. We’ve had three steps forward, so maybe at least a mini step back, or at least some sideways chop.”