AI Data Center Beneficiaries? Semiconductor Stocks Lose 1.6 Trillion Won in a Day

U.S. semiconductor company Semtech Corp. (NASDAQ: SMTC) closed at $133.85 on July 2, down 8.97% from the previous session. Trading volume rose to about 3.16 million shares, and its market capitalization fell to roughly $12.4 billion (approximately KRW 19 trillion), erasing about $1 billion (around KRW 1.6 trillion) in value in a single day.

Market analysts attribute the sharp decline in Semtech’s share price to the unwinding of leveraged positions and a broader risk-off sentiment amid the Federal Reserve’s hawkish stance, which triggered a sell-off across leading AI and semiconductor names. Although Semtech has recently been seen as a beneficiary of AI networking—driven by optimism around its 224G optical chips and AI data center interconnect solutions—the stock has exhibited significant short-term volatility and wide price swings.

Headquartered in California, Semtech supplies high-performance analog and mixed-signal semiconductors, IoT systems, and cloud connectivity solutions, with core businesses including LoRa low-power wide-area network technology and data center interconnect chips. In 2022, Semtech expanded its IoT and cloud connectivity portfolio by acquiring Canadian IoT firm Sierra Wireless for approximately $1.2 billion (about KRW 1.8 trillion).