Analysis: Retail Stock Sell-off Hits New High Since Pandemic, with 88% of Selling Pressure Concentrated in AI Chip Stocks

July 30th, according to Vanda Research data, U.S. retail investors recorded the largest single-day net stock sell-off since the March 2020 market crash, with a net selling amount of $213 million. About 88% of the selling pressure was concentrated in the semiconductor sector, with Micron (MU), SanDisk (SNDK), Seagate (STX), and Western Digital (WDC) being the main selling targets.

Vanda Research pointed out that retail investors have been net selling stocks for 9 consecutive trading days so far this year, a rare phenomenon in recent years. However, funds did not exit the stock market but shifted to diversified allocations such as ETFs. On that day, retail investors also net bought the Roundhill Memory ETF (DRAM) simultaneously. The institution believes that retail investors are becoming more cautious and selective, reducing exposure to individual stock risks rather than taking a bearish view on the overall market.