AI Beneficiary Stocks Dropped from S&P 600 Lose Over 1 Trillion Won in a Day

Semtech Corporation (NASDAQ: SMTC) shares plunged 7.29% to $162 on the Nasdaq, cutting its market capitalization to about $15.1 billion (roughly KRW 20 trillion). In a single day, the company lost approximately $1 billion (KRW 1.4 trillion) in market value, and trading volume topped 2.8 million shares as short-term profit-taking and panic selling took hold.

Analysts say that Semtech’s removal from the S&P SmallCap 600 index—announced on the 21st—has spooked investors, amplifying the pullback following the stock’s recent surge.

Earlier this month, Semtech hit a 52-week high on the back of booming demand for its 800G optical chips for AI data centers and stronger-than-expected first-quarter results. Since then, concerns over valuation levels and merger-and-acquisition risks have heightened share-price volatility.

Headquartered in Camarillo, California, Semtech is a semiconductor firm whose growth has centered on high-speed optical communication chips, LoRa low-power IoT technology used in applications such as Amazon Sidewalk, and a cloud-connectivity business fortified by its acquisition of Sierra Wireless.