Market Analysis: Are Markets Turning Away from AI?
Date: 23 June 2026
Market Overview
On June 23, 2026, there was a notable decline in market sentiment towards companies in the AI sector. This shift was highlighted by a significant drop in SK Hynix's stock, which fell over 12%, negatively impacting the KOSPI index by 10%. The broader market, including the S&P 500 and Nasdaq Composite, also experienced declines of 1.3% and 1.4%, respectively.
Key Stock Movements
Several companies within the AI ecosystem faced substantial losses, including:
- Micron Technology Inc: -11.9%
- SanDisk Corp: -11.5%
- Marvell Technology: -8.6%
- AMD: -7%
- Intel: -6.7%
Micron is set to release its Q3 results, with expectations of revenue around USD 35 billion, a significant increase from USD 9.3 billion in the same quarter last year. The anticipated earnings per share (EPS) is projected to exceed USD 20, compared to USD 1.9 a year ago. Any deviation from these forecasts could lead to further declines in stock prices.
Investor Sentiment and Market Dynamics
The sell-off was not limited to individual stocks; Nvidia, a key player in the AI sector, saw a decline of 2.7%. The Philadelphia Semiconductor Index recorded one of its worst sessions this quarter, as investors began to take profits after a period of strong gains. This shift in sentiment was also reflected in the VIX volatility index, which rose by over 11%.
There was a clear capital rotation occurring, with funds moving away from high-growth stocks towards more traditional defensive sectors. This was evident in the relative performance of the Dow Jones Industrial Average, which remained stable, contrasting with the declines in the tech-heavy Nasdaq.
Technical Analysis
Despite the day's sell-off, the medium-term uptrend that began in mid-March remains intact. A critical support zone for the bulls is identified between 28,900 and 29,000 points, where the 50-day simple moving average (SMA) lies. As long as prices stay above this zone, the current pullback may be viewed as a corrective movement within the prevailing trend.
However, momentum indicators are beginning to favor sellers in the short term. The RSI oscillator has dropped to around 52.9, indicating a neutral state with a slight bearish tilt, while the MACD indicator continues to signal a sell, suggesting a potential weakening of upward momentum.
Company News Highlights
- AMC Entertainment (AMC.US): Shares fell over 23% following an agreement to issue nearly 100 million new shares, leading to significant dilution.
- IBM (IBM.US): Stock rose by 4.3% due to an upgrade by JPMorgan and inclusion in the OpenAI Daybreak Cyber Partner Program.
- Primoris Services (PRIM.US): The company lowered its profit forecast for 2026, resulting in a 28% drop in share price.
- Avis Budget Group (CAR.US): Shares increased by 6.7% after settling litigation regarding insider trading profits.