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LAM Research CEO Tim Archer said in the earnings call with investors that going into 2027, the company sees “supply chain constraints for certain components continuing to limit chip makers.”
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Shares of Nvidia, Micron Technology, and Advanced Micro Devices plunged following the comments, alongside other chip stocks.
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Semiconductor companies had turned green earlier this week after a sharp selloff last week.
Semiconductor stocks reversed an early-week leg up, with major companies and exchange-traded funds plunging on Thursday after LAM Research CEO Tim Archer stoked supply chain concerns.
In the earnings call with investors, Archer said that going into 2027, the company sees “supply chain constraints for certain components continuing to limit chip makers and equipment companies’ ability to fully meet end demand.”
Chip Stocks Plunge Following Remarks
Shares of major chipmakers plunged at Thursday’s close amid growing concerns about supply chain constraints in the industry.
Nvidia Corp. (NVDA) shares fell more than 4% at close, while Micron Technology Inc. (MU) tumbled more than 6% and Advanced Micro Devices Inc. (AMD) fell by over 8%.
Shares of other prominent semiconductor companies, including Intel Corp. (INTC), Broadcom Inc. (AVGO), Marvell Technology Inc. (MRVL), and Qualcomm, Inc. (QCOM) also closed lower.
Meanwhile, chip-related ETFs also declined at Thursday’s close. The iShares Semiconductor ETF (SOXX) fell nearly 7% at close and continued to decline overnight. The Direxion Daily Semiconductor Bull 3X Shares (SOXL) plunged more than 20%, while VanEck Semiconductor ETF (SMH) fell nearly 6% at close.
Chip Stocks Pare Back Early Week Gains
Semiconductor companies reversed to green earlier this week after a sharp selloff last week.
“Investors have rotated from Mag Seven to tech more broadly as the AI ecosystem has produced more durable earnings than initially perceived,” Joe Gilbert, portfolio manager at Integrity Asset Management, reportedly told Bloomberg.
“It is possible to get robust earnings growth with cheaper multiples, especially with higher rates outside of the Mag 7,” he added.
What’s Retail Saying About The Chip Sector?
On Stocktwits, retail sentiment around SOXX and SOXL was ‘extremely bullish’ at the time of writing, while SMH was in ‘bullish’ territory.
One user said, “We just might get that dip we have been waiting for. Have your pile of cash ready. $SOXX $SMH $MU.”











