Wall Street chip stocks slide as Citi lifts Apple target

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Wall Street chip stocks slide

Highlights

SK Hynix drops 15.4% and Samsung Electronics falls 10.7% in South Korea as chip sector weakness impacts global markets, with SK Hynix ADRs down over 10% premarket.
Citi raises Apple price target to $365 from $315, maintaining buy rating and optimism that recent MacBook and iPad price hikes will offset higher memory component costs.
Meta expands Louisiana data center to 5 gigawatts with an estimated $50 billion cost, reflecting increased infrastructure investment and AI-driven demand.

Semiconductor selloff and analyst calls shape Monday trading

As reported by CNBC, weakness in chip stocks is weighing on early market sentiment, with S&P 500 and Nasdaq futures indicating a lower open while WTI crude climbs more than 3% to nearly $74 a barrel after weekend military strikes between the U.S. and Iran.

The pressure in semiconductors is spilling over from Asia. SK Hynix drops 15.4% and Samsung Electronics falls 10.7% in South Korea on the first trading day after SK Hynix lists American depository receipts on Nasdaq, while those ADRs decline more than 10% in premarket trading. Micron is down about 5% and Sandisk loses 6%.

Even with the selloff, demand for AI computing remains strong. TSMC reports that June revenue rises 68% from a year earlier, reinforcing expectations that capacity constraints and the search for reliable advanced chip supply continue to shape the sector.

Citi raises its price target on Apple to $365 from $315 and maintains a buy rating. Analysts say recent price increases on MacBooks and iPads should help offset margin pressure from higher memory prices with limited impact on demand, supporting the view that Apple can gain share in a difficult market.

Upgrades highlight data center and sector themes

Meta is expanding its Louisiana data center project, with the site now planned as a 5 gigawatt facility expected to cost more than $50 billion. Earlier plans had called for a 2 gigawatt project with a $27 billion price tag, underscoring the scale of infrastructure spending tied to AI and cloud demand.

HSBC upgrades Capital One to buy from hold after the stock's 17% year-to-date decline, saying macro risks and concerns over the Discover integration are now reflected in the share price. Wells Fargo also upgrades Humana to buy from hold and lifts its price target to $502 from $227, citing moderating Medicare Advantage costs and lower earnings risk.

Elsewhere, Citi increases its target on Rockwell Automation to $555 from $500 as part of an industrials earnings preview tied to AI and data center tailwinds. Jefferies upgrades Deckers Outdoor to buy from hold, saying the Hoka and Ugg parent has room to outperform guidance, and sets a new $130 price target, up from $110.

SK Hynix’s post-Nasdaq debut selloff highlighted how quickly sentiment can turn in AI-linked semiconductor stocks after a strong rally. In our earlier coverage, we noted that the drop in Seoul followed profit-taking and a market-wide reassessment of AI memory valuations as investors compared the new U.S.-listed ADR price reference with the Korean listing. The takeaway was that the AI demand story remains intact, but stretched valuations and new ADR supply can amplify near-term volatility.

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