Semiconductor Index Plunges 7.87% on June 23 Amid AI Valuation Concerns

According to Goldman Sachs, U.S. semiconductor stocks experienced sharp sell-offs on June 23, with the Philadelphia Semiconductor Index falling 7.87%, marking its largest single-day decline since June 5. Micron Technology dropped over 13%, SanDisk and ARM both fell more than 13%, while ASML, KLA, and Qualcomm declined over 8%. NVIDIA fell 4.15% and TSMC ADR dropped over 6%.

Goldman Sachs strategist Rich Privorotsky characterized the AI market as an "overstretched rubber band," warning that current high valuations rest on a single assumption that capital expenditures will only increase. He cautioned that if any major tech giant announces cuts to AI infrastructure spending, valuations across the entire AI sector would face "full repricing" far exceeding linear expectations.