Most S&P 500 tech stocks are 20% below their highs, while Micron and AMD lead XLK ratings (XLK:NYSEARCA) - Seeking Alpha

As of July 8, 2026, nearly 60% of S&P 500 technology stocks are trading at least 20% below their 52-week highs, signaling a broad market correction within the sector. While the overall IT index remain... Read original →

The current tech selloff reflects capital repricing AI hype, not systemic collapse. Micron and AMD’s outperformance signals a bottom-up revaluation: surging HBM3e/HBM4 demand is reshaping memory-compute co-design, forcing TSMC and Samsung to fast-track CoWoS capacity. AMD’s MI300 inference cost advantage has already diverted Microsoft and Meta orders, eroding NVIDIA’s edge-AI pricing power. Geopolitically, delayed CHIPS Act disbursements and tightening export controls from Taiwan, China are inflating localization validation costs for equipment makers like Lam and AMAT. Over the next 18 months, firms with advanced packaging integration and mature-node autonomy will lead supply chain realignment, while software-defined hardware pure plays face valuation markdowns.