Major chip stocks declined in overnight trading ahead of Monday after fresh U.S. and Iranian strikes threatened their fragile peace deal. Intel led the drop with shares falling 4.6%, while Advanced Micro Devices and Broadcom slid about 3% each and Nvidia dropped 1.7%. The U.S. launched several waves of strikes on Iran on Sunday following an Iranian attack on a container ship in the Strait of Hormuz earlier in the weekend. The escalation occurred near the midpoint of a 60-day truce intended to pave the way for peace talks between the two nations.
US Launches Strikes on Iran After Strait of Hormuz Attack
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. Iran stated 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 raised fears the war could reignite.
Intel Leads Chip Stock Declines Amid Global Market Selloff
Intel stock led the drop, falling 4.6% in overnight trading. 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%. Memory stocks also dropped, 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.
The selloff in chip stocks comes amid a broader rotation 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. Nvidia stock gained 8.3% last week — more than it had gained in the entire first half of 2026. On Stocktwits, retail sentiment was extremely 'bullish' for NVDA, AVGO and SOXX, and 'bearish' for AMD.
Earnings Season Begins This Week With Major Bank Reports
Investors are 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.
FAQ
What caused chip stocks to decline in overnight trading?
Chip stocks declined in overnight trading after fresh U.S. and Iranian strikes threatened their fragile peace deal. The U.S. launched several waves of strikes on Iran on Sunday following an Iranian attack on a container ship in the Strait of Hormuz earlier in the weekend.
Which chip stock fell the most in overnight trading?
Intel led the drop with shares falling 4.6% in overnight trading. Advanced Micro Devices and Broadcom shares slid about 3% each, while Nvidia stock dropped 1.7%, and the iShares Semiconductor ETF (SOXX) fell 3%.
When does the second-quarter earnings season begin?
The second-quarter earnings season begins this week, with major banks including Bank of America, JPMorgan and Wells Fargo reporting on Tuesday.
