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This Week’s Plunge In Chip Stocks Is More Ammo For Bulls
Lawrence Fuller · 2026-06-25 · via All Articles on Seeking Alpha

Summary

  • Recent risk-off sentiment triggered sharp declines in growth tech, space stocks, and cryptocurrencies amid forced deleveraging, but Micron's strong earnings may stabilize the sector.
  • Oil prices dropped below $70 as improved Strait of Hormuz traffic created a supply glut, easing inflation fears and reducing pressure on the Fed to hike rates.
  • Historical data on SMH suggests post-plunge rebounds are likely, supporting a bullish outlook for chip stocks and the broader market through the second half of the year.
  • Despite pockets of speculation, current Nasdaq momentum and valuations do not indicate a tech bubble, and corrections are viewed as healthy resets within an ongoing uptrend.
  • This idea was discussed in more depth with members of my private investing community, The Portfolio Architect. Learn More »
  • Sitewide Sale 2026: Get 20% Off
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Theeraphat Uamduang/iStock via Getty Images

It was risk-off yesterday, as expensive growth stocks in the technology and space sectors tumbled, and they took cryptocurrencies and precious metals down with them in what looked to me like speculators being forced to deleverage. Micron’s blowout earnings report is likely to

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Lawrence Fuller is the Principal of Fuller Asset Management (FAM), a state-registered investment adviser. He is also the manager of the Focused Growth portfolio on the copy-trading platform Dubapp.com. Information presented is for educational purposes only, intended for a broad audience. The information does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. FAM has reasonable belief that this marketing does not include any false or materially misleading statements or omissions of facts regarding services, investment, or client experience. FAM has reasonable belief that the content as a whole will not cause an untrue or misleading implication regarding the adviser’s services, investments, or client experiences. Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances or market events, the nature and timing of investments, and relevant constraints of the investment. FAM has presented information in a fair and balanced manner. FAM is not giving tax, legal, or accounting advice. Mr. Fuller may discuss and display charts, graphs, formulas, and stock picks that are not intended to be used by themselves to determine which securities to buy or sell or when to buy or sell them. Such charts and graphs offer limited information and should not be used on their own to make investment decisions. Consultation with a licensed financial professional is strongly suggested. The opinions expressed herein are those of the firm and are subject to change without notice. The opinions referenced are as of the date of publication and are subject to change due to changes in market or economic conditions and may not necessarily come to pass.

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