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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InAmid rising concerns over a potential shift in technology sector momentum, major semiconductor stocks including KLAC, TER, VSH, and POWI declined due to fears of cooling AI-driven demand. A Citi analyst warned regarding the returns on cloud platform AI spending, while reports of potential computing overcapacity at Meta further dampened sentiment. The sector faced additional pressure as Vishay Intertechnology shares dropped 11.2% following a discounted $750 million common stock offering.
This pullback occurs as investors closely scrutinize the sustainability of capital expenditure by tech giants, with market data showing selling pressure across equipment manufacturers and component suppliers. Compared to the previous quarter, skepticism regarding the speed of monetizing massive AI investments has increased, leading traders to take profits in stocks that have seen record year-to-date gains, according to market data and recent analytical reports.
In terms of price action, KLAC stood at $266.19, while TER closed at $427.34 and VSH at $51.21 (close July 1, 2026). Traders are now looking ahead to the Manufacturing PMI data from China on June 30 to gauge global manufacturing demand, alongside monitoring further speeches from Fed officials that could impact risk appetite in the growth and technology sectors.