Why Are Semiconductor Chip Stocks Falling On Thursday?

On Thursday, semiconductor stocks experienced a decline, with the PHLX Semiconductor Index falling nearly 3% and the NASDAQ Composite Index down over 1%. The drop was attributed to geopolitical tensions in the Middle East, raising concerns about potential helium supply disruptions critical for chip manufacturing. Micron Technology Inc reported strong results but saw its shares decrease by 5.54% amid worries over aggressive capital expenditure plans exceeding $25 billion by fiscal 2026. Other major chip companies, including Nvidia and Intel, also faced stock price declines, reflecting broader supply chain uncertainties.