Chip Stocks Slide as Iran War Tensions Trigger Rotation to Safety

NVDA, MRVL, SNDK, SKHY, and other semiconductor stocks fell 2-8% as investors rotated into safety amid escalating U.S.-Iran war tensions following a collapsed ceasefire. Melius's Ben Reitzes said higher oil prices from Strait of Hormuz supply disruptions could fuel inflation, pressure central banks to raise rates, and raise semiconductor input costs via helium and LNG-driven electricity spikes.

Why it matters: Despite the selloff, Reitzes downplayed overvaluation concerns, called the rotation temporary, and said he expects no hyperscaler AI capex cuts, awaiting upcoming Big Tech spending plans for direction clues.