Monday's most actively traded US stock by dollar volume, Micron Technology, closed down 4.32% with turnover of $32.484 billion. The company recently announced plans to increase its investment commitment in the United States from a previously pledged $200 billion by 2035 to over $250 billion, in response to surging demand for memory in the AI era. This expansion plan encompasses projects in multiple states including New York, Idaho, and Virginia.

Micron anticipates that the increased investment will support its long-term goal of producing 40% of its DRAM products in the US, while also creating more high-paying direct and indirect jobs. This expanded commitment reflects Micron's confidence in its technology leadership and the sustained demand for its cutting-edge memory products.

The second most traded stock, NVIDIA, closed down 3.52% with turnover of $24.754 billion. After recent market volatility drove NVIDIA's (NVDA) share price down roughly 16% from its May all-time high, erasing around $1 trillion in market value, one firm sent investors a clear signal by reiterating its "Buy" rating on the stock and maintaining a $300 price target. This implies an approximate 47% upside from the current level near $204.

Analysts, following communication with NVIDIA's investor relations team, noted that market concerns are primarily focused on three areas: a potential slowdown in AI capital expenditure by hyperscale cloud providers, rising memory costs squeezing margins, and the threat to NVIDIA's dominance from custom chips by companies like Broadcom. The analysis suggests these concerns, while valid, may be overblown.

The third most traded stock, SanDisk, closed down 12.63% with turnover of $23.315 billion. US memory chip stocks experienced a broad sell-off on Monday.

The fifth most traded stock, Tesla, closed down 3.19% with turnover of $12.895 billion. California Governor Gavin Newsom signed the SB 168 bill into law on Monday, officially launching the "My First EV" rebate program, which provides a $3,500 instant discount at the point of sale for first-time electric vehicle buyers. The program is funded by $135.5 million in state funds matched equally by participating automakers, for a total size of approximately $270 million.

The rebate applies to new vehicles with a suggested retail price not exceeding $50,000, and used EVs priced under $25,000 (qualifying for a $1,750 rebate). This price threshold directly benefits Tesla's base Model 3 and Model Y variants, but excludes the Cybertruck and higher-priced trims which exceed the limit.

Notably, a provision in the bill granting an exemption for "pure electric vehicle manufacturers headquartered in California" became a focal point. This clause exempts automakers like Rivian from the $50,000 price cap, allowing its roughly $58,000 R2 model to still qualify. However, Tesla, having moved its headquarters from California to Texas in 2021, no longer meets the "California headquarters" definition and is thus ineligible for this exemption.

The seventh most traded stock, AMD, closed down 4.21% with turnover of $12.268 billion. AMD is set to release its second-quarter earnings report. Multiple Wall Street firms, including Bank of America, have issued positive signals for AMD, citing strong server processor demand and the potential for an earnings beat.

Bank of America reiterated its Buy rating on AMD and raised its price target to $620. Analysts believe AMD's continued expansion of its EPYC server processor market share, solid cloud computing spending, and improved supply visibility will contribute to another robust quarter. Additionally, its MI455X Helios AI rack system is expected to see initial shipments in the third quarter. The analysis also noted that AMD's broad server CPU portfolio positions it well to benefit from emerging proxy AI workloads.

Several other firms also raised their AMD price targets ahead of earnings. One raised its target from $600 to $675, reiterating a Buy rating, citing still-solid industry fundamentals and highlighting the launch of significant AI products in the second half of 2026 as a key catalyst. Another had previously raised its target by 41% to $635, also anticipating an earnings beat and upward guidance from AMD.

The ninth most traded stock, Intel, closed down 6.12% with turnover of $10.327 billion. Morgan Stanley maintained its Overweight rating and $288 price target for NVIDIA, keeping it as its top pick in the semiconductor sector. Based on the July 9 closing price of $202.78 used in the report, the target implies roughly 42% potential upside. This valuation is broadly in line with the broader market and below compute chip peers like AMD, Broadcom, and Intel.

The tenth most traded stock, SpaceX, closed down 4.24% with turnover of $9.878 billion. The stock extended recent losses, touching its lowest level since its Nasdaq debut and retaining only a slim premium over its IPO price, having nearly erased the massive market value gains achieved following its initial public offering.

Market data shows SpaceX shares have declined steadily since hitting a closing high of $225.64 on June 16, retreating over 38% from that historic peak. On its first trading day, June 12, SpaceX priced its IPO at $135 per share, opening up 29% at $174 and briefly pushing its market cap close to $1.77 trillion, setting a record for the largest IPO in global history. However, market sentiment reversed quickly thereafter, with investors expressing concerns over the company's high valuation, persistent massive losses, and uncertainties surrounding its long-term projects.

The eleventh most traded stock, SK hynix (SKHY), closed down 9.32% with turnover of $8.779 billion. Analysts noted the sharp decline in SK hynix shares was a short-term market correction driven by multiple overlapping factors.

The immediate trigger was an earnings forecast from Korea Investment & Securities showing the company's second-quarter operating profit expectation was about 8% below market consensus, sparking investor concern.

A deeper reason is that SK hynix's HBM products are priced under long-term agreements, preventing them from rising in sync with general DRAM prices, which has led to short-term profit growth falling short of market expectations.

Simultaneously, HBM4 shipments failed to ramp as expected in the second quarter. Additionally, the stock had already surged approximately 630% ahead of its US listing, leading to heavy profit-taking sentiment after those positive catalysts materialized.

Despite the Bank of Korea and company management emphasizing the chip super-cycle remains intact, market worries about the cyclical nature of memory chips, high valuations, and skepticism over AI investment returns collectively triggered this pullback.

Noted short-seller Michael Burry pointed to the recent South Korean government-led, unprecedented massive memory chip expansion plans by SK hynix and Samsung Electronics as a key sign the AI investment cycle is "beginning to end," calling the Korean project a "peak capex signal" rather than an "immediate capacity signal," and labeling it the "beginning of the end" of the AI boom.

His judgment is not that these fabs will cause immediate oversupply next year, but is based on the classic semiconductor cobweb cycle: the most optimistic demand forecasts, highest chip prices, and most accommodative financing conditions often prompt all manufacturers to announce massive expansions simultaneously at the cycle peak. Because advanced wafer fabs take years from planning, land acquisition, power and cleanroom construction, large-scale semiconductor equipment installation, to mass production, the true flood of supply typically arrives when market demand has already cooled.

The fourteenth most traded stock, Oracle, closed down 6.47% with turnover of $7.516 billion. S&P downgraded Oracle's rating to "BBB-," citing OpenAI as a key credit risk. The primary reasons for the downgrade were: first, a surge in AI capital expenditure to $95 billion with a long payback period, pressuring cash flow; second, extreme reliance on OpenAI (accounting for nearly half of contract obligations), meaning Oracle would face idle capacity and financial impact if the valuation-questionable company encounters trouble.

S&P Global downgraded Oracle's credit rating by one notch, citing significant overspending on AI business capital expenditure and substantial risk from its high dependence on OpenAI.

On July 12, S&P Global lowered Oracle's credit rating from "BBB" to "BBB-," just one notch above junk status. S&P explicitly listed OpenAI as a "key credit risk" for Oracle in its rating report, noting that cash burn for Oracle's AI business far exceeded expectations—capital expenditure forecasts have been sharply raised from a previous $60 billion to $95 billion by 2027, with corresponding revenue not materializing for several years. This downgrade directly reflects rising market concerns about Oracle's financial resilience.

The seventeenth most traded stock, Marvell Technology, closed down 7.75% with turnover of $5.525 billion. The US memory chip sector generally declined on Monday.