Chip Stocks Tumble: SanDisk, Intel, SK Hynix Fall on Yield Fears
By Business Desk
Major chipmakers SanDisk, Intel, and SK Hynix saw shares drop up to 8% amid rising US Treasury yields and growing sector caution. Learn more about the market impact.
On August 18, 2026, major chipmakers SanDisk, Intel, and SK Hynix experienced significant share declines, plummeting by as much as 8%. This sharp sell-off reflects persistent investor caution across the semiconductor and technology sectors.
- SanDisk: 7.71% drop
- Intel: 7.36% drop
- SK Hynix: 6.45% drop
- 30-year US Treasury yield: 5.329% (highest since June 2007)
The decline was exacerbated by a notable increase in US Treasury yields, with the 30-year yield reaching its highest level since June 2007. Elevated yields typically negatively impact growth and technology stocks by raising the discount rate for future earnings, making them less attractive.
Sector Volatility Intensifies
The semiconductor industry has faced significant volatility since June, marked by cycles of profit-taking and substantial sell-offs. This instability is driven by several interconnected factors impacting market sentiment.
- Growing concerns over heavy artificial intelligence spending by large technology companies.
- Pressures from new domestic chip production initiatives.
- Memory IPOs emerging from China.
- Geopolitical developments in the Middle East, specifically concerns regarding a prolonged US-Iran conflict.
- Rising crude oil prices, with Brent crude climbing above $91 a barrel.
These combined pressures create a challenging and uncertain environment for chipmakers and the broader technology market, signaling continued scrutiny from investors.