European Investor
23 Jun 2026, 14:40
Semiconductor and AI-related stocks came under heavy pressure on Tuesday despite receiving significant price target increases from Bank of America, as a broad technology selloff overshadowed bullish analyst sentiment.
KLA Corporation (NASDAQ: KLAC) fell 8.3% to $246.84 after Bank of America raised its price target to $317 from $210 and maintained a Buy rating. Lam Research (NASDAQ: LRCX) dropped 8.7% to $373.99 after receiving a target increase to $480 from $330, while Marvell Technology (NASDAQ: MRVL) declined 6.9% to $286.56 after its target was lifted to $365 from $240.
The sharp declines highlight the intensity of today's technology selloff, which has affected much of the semiconductor and AI supply chain. Investors appeared focused on near-term concerns surrounding global chip demand and elevated sector valuations rather than the positive analyst actions.
Despite the weakness, Bank of America's substantial target increases suggest continued confidence in the long-term outlook for AI-related spending and semiconductor capital investment. All three companies are viewed as important beneficiaries of the ongoing expansion in artificial intelligence infrastructure, data centers, and advanced chip manufacturing.
The market reaction underscores how broader sentiment can outweigh company-specific positives in the short term. While shares fell sharply, the analyst upgrades indicate Wall Street remains optimistic about the sector's longer-term growth prospects as AI adoption continues to drive investment across the semiconductor ecosystem.
KLA Corporation (NASDAQ: KLAC) fell 8.3% to $246.84 after Bank of America raised its price target to $317 from $210 and maintained a Buy rating. Lam Research (NASDAQ: LRCX) dropped 8.7% to $373.99 after receiving a target increase to $480 from $330, while Marvell Technology (NASDAQ: MRVL) declined 6.9% to $286.56 after its target was lifted to $365 from $240.
The sharp declines highlight the intensity of today's technology selloff, which has affected much of the semiconductor and AI supply chain. Investors appeared focused on near-term concerns surrounding global chip demand and elevated sector valuations rather than the positive analyst actions.
Despite the weakness, Bank of America's substantial target increases suggest continued confidence in the long-term outlook for AI-related spending and semiconductor capital investment. All three companies are viewed as important beneficiaries of the ongoing expansion in artificial intelligence infrastructure, data centers, and advanced chip manufacturing.
The market reaction underscores how broader sentiment can outweigh company-specific positives in the short term. While shares fell sharply, the analyst upgrades indicate Wall Street remains optimistic about the sector's longer-term growth prospects as AI adoption continues to drive investment across the semiconductor ecosystem.