NVIDIA & AI Semis Selloff Deepens; Global Tech Selloff; Rotation; Record Outflows; Micron Q3; Burry Warning; SK Hynix ADR; Hon Hai; TSMC Arizona; BofA Snapback Warning; Arista Beneficiary; Samsung Profit-Taking; AVGO-AAPL Deal; MWHS ETF
Key Questions
What drove the global tech selloff in early July 2026?
South Korea's Kospi fell 8% and Japan's Nikkei dropped 5%, with US stocks seeing record $17.2B outflows and $9.3B in tech fund withdrawals. Money rotated toward Japan and international markets amid semis weakness.
How did Micron perform in Q3 earnings?
Micron reported Q3 revenue of $41.45B and profit of $28.2B, with Q4 guidance of $49-51B, causing its stock to surge 16% after-hours. Broader semis did not lift Nasdaq despite the beat.
What happened to Broadcom stock amid AI guidance concerns?
Broadcom plunged 15% on an AI guidance miss, though a contrarian thesis emerged around its 46% FCF margin. It later rose over 4% on news of an extended Apple chip deal through 2031.
Why did Samsung shares drop despite strong earnings?
Samsung reported an 18x profit jump and record revenue but shares fell 10% due to investor concerns over massive future investments. This triggered profit-taking and dragged related names like SK Hynix.
What signals point to a rotation out of AI semis?
Record tech outflows, negative divergences in technical analysis, and underperformance relative to small caps and other sectors confirm accelerating rotation. Broadcom and Nvidia faced particular pressure while names like Marvell joined the S&P 500.
What is the significance of SK Hynix's upcoming ADR listing?
SK Hynix plans an ADR listing with 0.5% fee on up to 2.5% of shares, book building July 6 and Nasdaq debut July 10 under symbol SKHY. It is viewed as a potential wild card in the memory sector amid volatility.
How did Intel perform relative to the broader market?
Intel rose 21% over the month and closed up 1.5% in one session, outpacing the market despite a high 114x P/E. It carries a Zacks #1 Strong Buy rating.
What risks does the new MWHS ETF introduce?
The MWHS ETF offers direct electricity futures exposure, amplifying systemic single-stock volatility risk in the chip sector. It coincides with warnings from Michael Burry and others about stretched valuations.
Global tech selloff intensifies with South Korea's Kospi down 8% and Japan's Nikkei falling 5%. US stocks posted record $17.2B outflow (largest since March) with money rotating to Japan and international developed markets, alongside $9.3B tech fund withdrawal. Micron Q3 earnings crushed estimates: revenue $41.45B, profit $28.2B, Q4 guide $49-51B; stock surged 16% after-hours but broader semis failed to boost Nasdaq. Supply crunch through 2027-2028 via SCAs. Broadcom 15% plunge on AI guidance miss, but contrarian thesis (46% FCF margin) emerges. Marvell added to S&P 500 (+9% pre-market); sell-the-news risk high. Oracle beat earnings but fell 11% on AI spending concerns. ON Semi's 24% drop on Synaptics deal highlights execution risk. Nvidia $20B bond sale. Energy rotation confirmed via US-Iran peace rumors. Tom Bowley's technical analysis shows negative divergences in semiconductors. Record tech fund outflows ($9.3B in one week) confirm rotation. DJIA consolidating near trend line support; semis sold off ahead of Micron. Oil price drop on Iran headlines drags energy stocks. Apple price hikes blamed on memory chip supply shock. Dow hit new all-time high on July 1 while Nasdaq slipped on chip weakness. Q2 2026 saw S&P 500 +14%, Nasdaq +20%, best quarter in six years, but rotation out of semis is accelerating. Lam Research (LRCX) expected to beat earnings again. Rotation into software and Chinese internet (KWEB) is early stage. Meta's cloud pivot (+8.8%) seen as bullish rebuttal to overbuilding fears. New DRAM ETF and leveraged counterpart amplify systemic single-stock volatility risk. Michael Burry shorting Caterpillar adds high-conviction signal against industrials. Burry warns the chip index hasn't stretched this far above trend since the dot-com top. Chip stocks opened Q3 with a sharp selloff after record Q2. June NFP miss (57k vs 110k) adds dovish twist. Markets closed July 3. A new AB piece warns AI enthusiasm leaves little margin for error. SK Hynix ADR listing: 0.5% fee, up to 2.5% shares, book building July 6, pricing July 9, Nasdaq debut July 10 (symbol SKHY). Hon Hai Q2 revenue surged 40% on AI server demand. TSMC won approval for $20B Arizona expansion. BofA warns of stock market snapback. Arista Networks is a major beneficiary of Big Tech's push to break Nvidia's grip. Owens Corning jumped 11% on Carlisle's unsolicited bid. Nucor earnings preview highlights 78% EPS growth estimate. MFS warning on US tech concentration adds institutional weight to rotation thesis. Analysts flag Micron and other high-upside picks for July. A new article (July 3) reinforces the rotation thesis, noting extreme AI momentum (MSCI Momentum ETF +4 std devs) and broadening into small caps. A bearish analyst note on Nvidia flags circular financing risk. AAPL outperformance explained as safe haven trade. Jim Cramer's buy call on GE Vernova (GEV) adds to rotation into energy/industrials. A new article on market dispersion highlights implied correlation near lows and SK Hynix as a wild card. Samsung's preliminary earnings (18x profit jump, record revenue) triggered profit-taking — shares dropped 10% in Asia, dragging SK Hynix/Kioxia, a 'sell the news' signal. Morningstar (July 6) identifies CarMax and CNH Industrial as 5-star small-cap picks. New MWHS ETF offers direct electricity futures exposure. AVGO-AAPL chip deal through 2031 reinforces Broadcom's custom ASIC strength; AVGO +5% on news. Morning Call Sheet highlights liquidity risks, chip stocks, Fed uncertainty, and tariffs. On July 6, a sharp chip rally (AMD +9.3%, ANET +8.3%, IREN +15%) pushed Nasdaq higher while Dow eased, with Goldman cautious ('be picky') vs JPM buy-the-dip. Memory names (Micron, Sandisk, WDC) bounced. A Lead-Lag analysis of the NFP miss argues the rotation failed because Russell dropped while Nasdaq surged. New: Intel up 21% in month, Zacks #1 Strong Buy but 114x P/E. ZETA jumps 5% on AI infrastructure pivot with Palantir partnership. Dow crossed 53,000 on chip-led rally. Goldman raised AMD target to $640. ISM services index still expanding. AB piece highlights positive EPS revisions spreading beyond mega-caps, low correlations, high stock-level dispersion — supporting active stock selection.