Semiconductor rebound lifts stocks on June 8 after Friday’s AI selloff, with Micron, Intel, Apple in focus

Wall Street moved higher on Monday, June 8, as investors treated last week’s AI-led selloff as more of a reset than a break in the underlying trend. The S&P 500 rose about 0.5% after a 2.6% drop on Friday, its worst since October, and the Nasdaq Composite ended higher despite lingering concerns that high-flying technology stocks had run ahead of fundamentals. (AP)

Chip-related stocks led the rebound. Micron Technology climbed 9.8% on Monday after dropping 13.3% on Friday, the company’s largest loss in the S&P 500, according to the Associated Press. The same report said chip and memory sellers that were hit hard Friday on worries that AI-related pricing had become too rich regained ground as trading progressed into the U.S. session. (AP)

Broader semiconductor indexes also improved. Reuters reported that the Philadelphia semiconductor index was up 6.7%, rebounding from Friday’s losses that wiped out about $1 trillion in market value for U.S.-listed chipmakers. Reuters also said the S&P 500 technology index gained 2.5% on Monday. (MarketScreener/Reuters)

The market’s Friday shock traced back to both sentiment and fundamentals inside the semiconductor supply chain. Reuters said U.S.-traded chipmakers plunged on Friday, losing more than $1 trillion in market value, with deep declines in Nvidia, Micron, and Advanced Micro Devices following a weak Broadcom update earlier in the week. Reuters described Broadcom’s results as showing demand for its custom AI chips business falling short of lofty expectations, and said the PHLX chip index slumped almost 8.5% on Friday. (Reuters)

By Monday, some of the same names that were hit hardest on Friday were among the strongest. Fortune reported that Micron and Broadcom, which had their worst session since 2020 on Friday, were among Monday’s best performers, rising about 6.5% by midday, as Wall Street appeared to interpret Friday’s decline as an easing off of a record-setting rally rather than a full repricing of the AI trade. (Fortune)

Intel stood out among Monday’s individual movers. Reuters, via MarketScreener, said Intel shares jumped 12.3% after a report that Alphabet’s Google placed an order for more than three million tensor processing units, or TPUs, to be manufactured in 2028. TPUs are specialized AI chips built by Google to run machine learning workloads, and investors often treat large TPU orders as a announcement that AI infrastructure demand will keep accelerating. (MarketScreener/Reuters)

Apple, meanwhile, was part of the risk-management calculus. Reuters said Apple shares rose about 2% ahead of the Worldwide Developers Conference, with investors awaiting an overhaul of Siri, the iPhone maker’s AI assistant, along with other AI features. Apple’s own announcement pegged WWDC26 for June 8 through June 12 and said the conference would include AI advancements and new software and developer tools. (MarketScreener/Reuters; Apple Newsroom)

Still, not everything was fully resolved by Monday’s rebound. The late-week selloff was driven by a mix of expectations for AI chip demand and sensitivity to macro inputs like interest-rate expectations, which can compress valuations for companies whose earnings are perceived to be further out in time. And while Monday’s early trading showed renewed buying in chip names, the reports did not provide a single, consistent explanation for every stock’s move, leaving room for more volatility around upcoming data releases and WWDC announcements. (Fortune; MarketScreener/Reuters)