U.S. semiconductor and storage stocks led declines among large-cap movers on Tuesday, as chip-related equities extended losses following recent volatility in the sector.
Arm Holdings fell 5.87%, SanDisk dropped 6.34%, and Micron Technology slid 5.43%, all underperforming in the mega-cap category. Marvell Technology and Lam Research each declined 5.87%, while Applied Materials fell 4.86%. The broader chip equipment group tracked broader tech weakness, with Lam Research and Applied Materials among the most widely held names in the space.
Fabrinet, classified as a large-cap stock, tumbled 17.45% despite topping fourth-quarter estimates. The company’s revenue and earnings per share exceeded expectations, but its outlook and broader market sentiment weighed on the shares. The stock’s decline underscored the disconnect between individual company performance and sector-wide trading dynamics.
Mid-cap semiconductor and tech names also retreated, with MaxLinear down 10.68% and Quantinuum falling 8.93%. 21Vianet Group dropped 10.54% after posting weaker-than-expected second-quarter earnings and issuing cautious guidance. The declines in mid-cap tech mirrored broader caution in the sector following mixed corporate outlooks.
Small-cap technology stocks diverged from the trend, with Weave Communications surging 31.83% and Duos Tech gaining 19.16%. Flexsteel Industries rose 15.85% after reporting better-than-expected fourth-quarter results and raising its guidance. The gains highlighted pockets of resilience in smaller, domestically focused companies despite broader market headwinds.
The mixed performance across market-cap segments reflected ongoing rotation within tech, with semiconductor and storage names facing pressure while select small-cap tech stocks benefited from company-specific catalysts.
