JPMorgan’s latest research note shows retail investors beefed up positions in chipmakers like SanDisk, TSMC and Nebius Group NV, while pulling back from the Magnificent Seven mega‑cap tech names.
SanDisk’s stock slid 8.5% on Thursday, trailing TSMC’s 4.5% drop and Nebius Group’s 7.2% fall, all amid a wave of retail sell‑offs that followed last week’s buying spree.
The Nasdaq 100 fell 2.9% – its steepest single‑day decline since June – and the Philadelphia Semiconductor Index plunged 6.7%, sending the sector into its lowest three‑month low.
Retail inflows into technology ETFs hit a record second‑highest level, with VanEck’s semiconductor ETF receiving its biggest one‑day inflow ever, underscoring the shift of retail capital into niche tech themes.
Bank of America analysts project a 66% earnings growth for the S&P 500 IT index in Q3, and SanDisk’s management is expected to address the impact of AI spending on its upcoming earnings call. Investors are watching closely for guidance on revenue, margins and the company’s strategic focus in the coming quarter.