ARM Holdings and chip-equipment stocks lead global semiconductor rout on South Korea market crash and rate fears, SOXX -7.88%

ARM Holdings plc tumbled 10.1% Monday as a collapse in South Korea's chip-heavy KOSPI index and a Bank of America research note warning of up to three additional Federal Reserve rate hikes this year sent the global semiconductor sector into its sharpest one-day rout in months. The S&P 500 fell 1.44%, the Nasdaq Composite slid 2.21%, and the SOXX semiconductor ETF cratered 7.88%, erasing an estimated $1.4 trillion in market value from the AI chip universe in a single session, while enterprise software names staged a quiet counterrally.

This recap analyzes the top 25 publicly-listed AI stocks selected by these criteria: chips and chip equipment ($NVDA, $AVGO, $AMD, $ARM, $INTC, $TSM, $ASML, $AMAT, $LRCX, $SMCI, $DELL); hyperscalers and AI labs ($MSFT, $GOOGL, $AMZN, $META, $ORCL, $CRM, $NOW); pure-play AI and data infrastructure ($PLTR, $SNOW, $MDB, $DDOG); AI-adjacent security and platform ($CRWD, $NET, $PANW); plus $TSLA for autonomy and $BIDU for the China-AI overhang. Macro reference: $SOXX (semis ETF), S&P 500, Nasdaq Composite. End-of-day prices via Yahoo Finance.

Today's biggest movers

ARM Holdings slides 10.1% as valuation stretch and South Korea shock collide

ARM Holdings plc (NASDAQ: ARM) suffered the deepest single-session loss in the AI chip universe Monday, falling 10.1% to close at $366.39 after a torrent of converging pressures overwhelmed the stock's year-to-date momentum of more than 219%. The selling began overnight as South Korea's KOSPI index plunged roughly 10%, its steepest intraday decline in months, with Samsung Electronics and SK Hynix both tumbling more than 12% and triggering circuit breakers, sending reverberations across every major chip design and equipment name globally.

ARM's vulnerability was compounded by a downgrade issued the previous week by New Street Research, which cut the stock from Buy to Neutral and warned that the trailing price-to-earnings ratio had stretched past 480x following the stock's 235% year-to-date rally. Consecutive open-market share disposals by senior ARM executives, including its Chief Commercial Officer, Chief Accounting Officer, and Chief People Officer, across late May and June have also weighed on sentiment. Analyst consensus targets from Bernstein and Mizuho remain constructive on the name, but the average Street price target sits near $282, a significant discount to Monday's close.

Chip equipment stocks record some of the session's deepest losses

Lam Research Corp. (NASDAQ: LRCX) fell 9.33% to $371.33 and Applied Materials Inc. (NASDAQ: AMAT) dropped 8.48% to $585.88, as the South Korea shock catalyzed a sharp repricing of chip equipment makers whose near-term order books are closely linked to Samsung and SK Hynix capital spending cycles. AMAT's decline drew additional scrutiny given recent insider selling: Chief Executive Gary Dickerson liquidated roughly $42.5 million in shares in mid-June, while Chief Technology Officer Omkaram Nalamasu sold approximately $14.4 million, moves the market interpreted as caution from company leadership on valuation. Despite the session's losses, the S&P Global analyst consensus on AMAT remains Buy, with an average 12-month price target of $524.78. Wells Fargo recently raised its target on LRCX to $450 from $365, while Oppenheimer lifted its target to $400 from $330.

ASML Holding N.V. (NASDAQ: ASML), the Dutch monopoly supplier of extreme ultraviolet lithography machines, gave back 7.82% to close at $1,778.46. Market reports indicate Taiwan Semiconductor Manufacturing Co. has been signaling delays in deploying ASML's next-generation High-NA EUV systems, with clients prioritizing advanced packaging alternatives ahead of a full High-NA volume ramp. Bank of America reiterated a Buy rating and raised its ASML price target to $2,345 from $2,268, representing more than 30% upside from Monday's close.

Taiwan Semiconductor retreats 6.7% as foundry names follow KOSPI lower

Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) retreated 6.69% to $436.39, reversing a stretch of record highs. Susquehanna analyst Mehdi Hosseini had raised the firm's price target on TSMC to $575 from $500 just ahead of the selloff, underscoring the disconnect between sell-side conviction and Monday's risk-off tape. TSMC remains up 36.54% year-to-date and carries a Strong Buy consensus from 17 covering analysts, with none recommending a sell.

Intel Corp. (NASDAQ: INTC) fell 6.14% to $132.28, pulling back from an all-time closing high of $140.94 set the prior session, in a retreat driven entirely by macro sentiment rather than company-specific news. Intel remains up 235.9% year-to-date, an extraordinary run documented in our June 18 recap of the Intel and Super Micro surge. Advanced Micro Devices Inc. (NASDAQ: AMD) also fell 5.76% to $519.85, though AMD retains a one-month gain of 11.2% and a year-to-date return of 132.6%.

Enterprise software bucks the selloff; ServiceNow leads

ServiceNow Inc. (NYSE: NOW) gained 3.15% to $95.94, the strongest performer in the 25-name universe Monday, after Benchmark raised its price target and reaffirmed a Buy rating, calling the company one of the "cleanest operating models in SaaS" and a top large-cap value pick. The optimism follows ServiceNow deepening a multiyear collaboration with IBM Corp., connecting the ServiceNow AI Platform with IBM's watsonx, Red Hat, and automation stack, with joint commercial offerings targeted for the second half of 2026. The stock remains down 34.93% year-to-date; Wall Street's average 12-month price target of $141 implies roughly 47% upside from Monday's close, with 33 of 37 covering analysts carrying a Buy rating.

Cloudflare Inc. (NYSE: NET) added 3.0% to $224.94, touching an intraday high of $230.11 before fading. Salesforce Inc. (NYSE: CRM) gained 2.20% to $153.42 and Dell Technologies Inc. (NYSE: DELL) rose 2.17% to $427.78, the latter in a volatile session that spanned a $391 low and a $435 high. Dell's fiscal year 2026 revenue reached $113.5 billion, an 18.8% increase year over year driven by AI-optimized server demand; the next quarterly earnings report is expected September 3.

Notable but quieter

NVIDIA Corp. (NASDAQ: NVDA) fell 4.13% to $200.04, generating the session's highest dollar trading volume at roughly $30 billion. Broadcom Inc. (NASDAQ: AVGO) lost 3.06% to $380.15. Super Micro Computer Inc. (NASDAQ: SMCI) surrendered 6.03% to $33.32, reversing part of last week's 14% surge; for context on SMCI's recent trajectory, see our June 22 recap. Tesla Inc. (NYSE: TSLA) retreated 5.79% to $381.61. Palantir Technologies Inc. (NYSE: PLTR) fell 2.34% to $116.70, extending a 12.42% five-day slide. Oracle Corp. (NYSE: ORCL) slid 5.66% to $165.16, now down 15.6% year-to-date. Microsoft Corp. (NASDAQ: MSFT) outperformed with a 1.80% gain to $373.94.

What to watch tomorrow

Micron Technology is the next major catalyst for the AI chip demand narrative; a guidance shortfall would likely extend Monday's equipment and foundry losses. Federal Reserve Chair Jerome Powell's mid-week congressional testimony will be parsed for signals on rate timing after Bank of America flagged up to three additional hikes this year. TSMC's monthly revenue release, expected within days, provides the first hard data on foundry bookings since the South Korea shock. No S&P 500 earnings of note are on the Tuesday calendar.

Not investment advice.