Micron NASDAQ:MU and Intel (NASDAQ:INTC) led chip stocks lower Monday even as the broader market moved higher on easing U.S.-Iran tensions.
Micron fell 6% after a class-action lawsuit filed in California accused Micron, Samsung and SK Hynix of coordinating to restrict DRAM supply and push prices higher during the AI boom. Sandisk dropped 8%, while Western Digital rose 2.7%, Seagate gained 0.7% and Everpure edged up 1.6%.
The weakness spread beyond memory. Intel dropped 5%, Marvell fell 4% and AMD NASDAQ:AMD slipped 3%, while the Philadelphia Semiconductor Index declined 0.4%. That stood in contrast to gains of 0.5% for the Dow, 0.6% for the S&P 500 and 1% for the Nasdaq.
AI software stocks held up better. Palantir gained 4.7% after new deals with Surf Air Mobility and Nvidia, while Nvidia rose 0.7% and the iShares Expanded Tech-Software ETF gained 2.5%. the split shows chip sentiment remains fragile even as AI software demand stays strong.