Major chip stocks fell in overnight trading ahead of Monday, tracking the broader market after fresh U.S. and Iranian strikes threatened their fragile peace deal, sending global equities lower and oil prices higher.
led the drop, with the stock falling 4.6%. Advanced Micro Devices and Broadcom shares slid about 3% each, while Nvidia stock dropped 1.7%. The chip sector benchmark iShares Semiconductor ETF (SOXX) fell 3%.
The closely watched memory stocks , tracking sharp declines in shares of Samsung and SK Hynix in South Korea. The region’s main index, Kospi, slid 7.3% by 1 pm in Seoul.
The Direxion Daily South Korea Bull 3X Shares (KORU), a three-times leveraged ETF tracking South Korea’s largest stocks, was down 0.5% overnight and trending among the top on Stocktwits at the time of writing.
Fresh US-Iran Escalation Jolts Markets
The U.S. launched several waves of strikes on Iran on Sunday over an Iranian attack on a container ship in the Strait of Hormuz earlier in the weekend.
Iran responded with attacks on Bahrain, Kuwait, Qatar, Jordan and Oman – regions hosting U.S. military forces – and said that the latest U.S. strikes have “rendered futile” all the diplomatic efforts of the last few months.
The U.S. and Iran are nearing the midpoint of a 60-day truce meant to pave the way for peace talks, but fresh attacks have instead raised fears the war could reignite.
Chips, Tech Rotation
The selloff in chip stocks comes amid a within the tech sector. Intel, SanDisk and Micron have pulled back from their June highs as the second half of the year got underway, while laggards such as Apple and Nvidia have rebounded.
The pressure is particularly disheartening for Nvidia investors. The stock gained 8.3% last week – more than it had gained in the entire first half of 2026.
On Stocktwits, the retail sentiment was extremely ‘bullish’ for NVDA, AVGO and SOXX, and ‘bearish’ for AMD.
With the geopolitical tensions in the backdrop, investors are now setting up trades ahead of the second-quarter earnings season. The results season begins this week, with major banks including Bank of America, JPMorgan and Wells Fargo reporting on Tuesday.