Why did chip stocks fall?

Chip stocks fell due to concerns over high valuations after a strong rally, as investors took profits.

Which stocks were affected by the move?

Nvidia (NVDA), AMD (AMD), and Intel (INTC) were among the decliners, while Moderna (MRNA) and Pfizer (PFE) gained.

Does this mean the end of the AI rally?

No, but it indicates profit-taking and rotation to defensive sectors; volatility may continue.

Wall Street Mixed: Moderna Surges, AI Chip Stocks Slide

Wall Street saw mixed trading on Friday, with Moderna and healthcare stocks rallying while AI-related chip stocks tumbled from recent highs as investors rotated out of tech.

June 26, 2026

2 min read

Source: Reuters

U.S. markets ended mixed on Friday, with Moderna (MRNA) and healthcare stocks surging while AI-related chip stocks pulled back sharply from their recent record highs.

Reasons for the Move

Moderna's Surge

Moderna shares jumped after the company reported positive trial results for its new RSV vaccine, boosting investor confidence in its pipeline beyond COVID-19 vaccines.

Chip Stocks Slide

Major chip stocks including Nvidia (NVDA), AMD (AMD), and Intel (INTC) fell between 2% and 4%, amid concerns over stretched valuations following a powerful rally that pushed them to all-time highs.

Context

The moves come after a week that saw Wall Street indices hit record levels, driven by AI optimism. However, investors began taking profits in the tech sector and rotating into defensive sectors like healthcare.

Similar Moves in the Sector

Losses were not limited to chip stocks; other AI-related companies such as Microsoft (MSFT) and Amazon (AMZN) also declined about 1% each. Meanwhile, pharmaceutical stocks like Pfizer (PFE) and Johnson & Johnson (JNJ) gained.

Frequently Asked Questions

Moderna stock rose after announcing positive trial results for its new RSV vaccine.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.