Chip Stocks Sell Off Sharply on Memory Slump

The iShares Semiconductor ETF fell 9% as Micron dropped as much as 17% intraday before partially recovering.

Updated on Nov. 5, 2026 in Semiconductors

Photo of a bare silicon wafer with a grid of memory-chip dies on a dark slate surface under cool diffuse light. — Chip stocks sold off sharply, pushing the iShares Semiconductor ETF down 9% and Micron as much as 17% intraday after two weeks of losses. AI Illustration. Upload story photo >

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Chip stocks sold off sharply, with the iShares Semiconductor ETF falling 9% after losses accumulated over the past two weeks. Micron fell as much as 17% intraday before recovering somewhat.

Why it matters

The selloff followed a two-week run of losses in chip and memory stocks, and a portfolio manager attributed it to speculators being flushed out of memory names. Datacenter buildouts could also slow following Democrats' electoral wins, a shift the manager described as a slight adjustment rather than a sea change.

The iShares Semiconductor ETF is down 9% on the session yet remains up 35% year-to-date, while Micron, which fell as much as 17% intraday, is up about 150% for the year and trades at a forward price-to-earnings ratio of 3.9 per FactSet. It is not yet clear how far the datacenter slowdown will reduce demand for these companies' products.

The players

Micron

Micron is a major maker of memory chips whose shares were the hardest hit among the names cited in the selloff.

FactSet

FactSet is a financial data and analytics provider that supplied the forward price-to-earnings figure for Micron.

The details

Selling in chip stocks intensified to an extreme level on the day reported, capping recent losses that accumulated over the past two weeks. Micron recovered part of its intraday drop by the close.

Losses in chip and memory stocks accumulated over the two weeks before November 5, 2026.
The selloff came to a head on November 5, 2026.

Big Picture

The selloff reverses a strong 2026 run in which the iShares Semiconductor ETF gained 35% and Micron rose about 150%, showing how quickly the gains of the year can be tested when memory names fall. The pullback is weighed against a forward P/E of 3.9 for Micron, a multiple that leaves room for debate over whether the decline reflects speculative excess or a shift in datacenter demand.

For investors holding semiconductor index funds or Micron shares, the selloff translates directly into lower portfolio values on the day and an opportunity to reassess position sizes against a stated 3.9 forward P/E. Households with retirement accounts tied to technology funds may see those balances fluctuate with the same volatility.

The takeaway

Investors watching chip stocks should track whether datacenter buildout plans are revised, since that development would matter more to demand than a single day's trading. Reviewing how much of a portfolio is concentrated in memory names can help limit exposure to similar sharp reversals.