Chip stocks fell Tuesday to end a short-lived rebound as the artificial-intelligence trade again came under pressure.

It all started with Samsung Electronics, which set the tone for the broader market overnight. The South Korean memory-chip maker forecast a huge surge in profit, but that wasn't enough to stop investors from ditching shares.

Samsung rival Micron Technology dropped 5.4%. Applied Materials and Lam Research, both big suppliers to Samsung, both fell 6.9%.

That weakness bled into other chip makers. Intel dropped 9.2% and Advanced Micro Devices was down 5.6%.

Optical networking and glassmaker Corning declined 4.3% to $186.39. Oppenheimer raised its Corning price target to $230 from $210 and maintained an Outperform rating on the shares. The firm noted the AI-infrastructure unwind could offer an attractive entry point into the stock.

Chips and networking company Marvell Technology fell 7.4%. Server maker Super Micro Computer moved 2.7% lower with many other AI-related stocks also in the red.

SpaceX fell 5% to $152.37 as the rocket and AI company joined the Nasdaq 100. Numerous firms also initiated coverage on the stock with Wall Street broadly taking a bullish view of Elon Musk's company.

GE Vernova dropped 7.3%. The reason appeared to be a downgrade of Germany-based Siemens Energy, which competes with GE Vernova. On Monday, Barclays downgraded Siemens Energy shares to Sell from Hold. The size of the GE Vernova move shows how nervous investors are about the AI trade.

Caterpillar fell 4.2%, weighing down the Dow Jones Industrial Average. The construction equipment company, which has become an AI infrastructure play, dropped after announcing its acquisition of mining solutions company, Skycatch.

Crinetics Pharmaceuticals soared 99% to $83.49 after Vertex Pharmaceuticals said it agreed to buy the endocrine diseases biotech for $85 a share in cash, for a total equity value of about $10 billion.

Fiserv rose 2.3% following reports that big banks were holding talks to acquire the fintech company's debit card payment processing network. Fiserv didn't respond to request for comment from Barron's.

Rivian Automotive sank 15% after the electric-vehicle manufacturer said it would sell 75 million shares to help repay a $4.5 billion loan from the Energy Department.

Palantir Technologies rose 4.6% and was set to close higher for a seventh straight trading session. The company unveiled its first commercial customer in Mexico, marking an expansion beyond the massive defense contracts that built its reputation.

Walmart gained 1%. The largest U.S. grocer said late Monday it is cutting prices on thousands of goods, including ground beef and Coca-Cola. President Donald Trump called the price reductions a "huge deal" in a post on social media.

Write to George Glover at george.glover@dowjones.com and Kit Norton at kit.norton@barrons.com

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July 07, 2026 14:15 ET (18:15 GMT)

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