Micron, Intel Stocks Extend Selloff as $200 Billion Chip Sector Wipes Out - GuruFocus

The semiconductor industry faces significant challenges as Micron and Intel stocks continue their downward trajectory, with the entire $200 billion chip sector experiencing substantial market value er... Read original →

Micron and Intel’s prolonged selloff exposes a generational rift: while AI demands HBM and advanced packaging, their legacy DRAM and x86 fabs drown in oversupply. Upstream equipment makers face fading visibility, while downstream PC and datacenter clients pivot to TSMC and Samsung for customized solutions. Delays in U.S. CHIPS Act disbursements and tightening export controls from Taiwan, China have spiked compliance costs by 15–20%, forcing supply chain re-engineering. TSMC and SK Hynix are aggressively expanding capex to dominate AI-centric foundry and memory bandwidth, while NVIDIA locks customers into its CoWoS ecosystem—squeezing traditional IDM relevance. Over the next 18 months, firms lacking AI co-design or advanced packaging capabilities risk permanent market-value erosion of over 30%. Vertical integration and geopolitical neutrality will redefine valuation benchmarks.