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What caused the pre-holiday chip stock slump and what to do about it

News | 2026/07/05 22:26

What caused the pre-holiday chip stock slump and what to do about it

The chip stock slump and Anthropic's new plans

Jim Cramer discusses why chip stocks saw a significant slump before the holiday. This decline was triggered by news of Anthropic's talks with Samsung regarding the production of custom artificial intelligence chips.

Despite Anthropic's successes, the company has yet to clarify what type of chips it plans to produce. This prompted investors to quickly sell their shares, leading to a significant drop in stocks of Micron, Seagate, Western Digital, Sandisk, AMD, Nvidia, and Intel.

Jim Cramer points out that Intel has significant upside as it is building new manufacturing facilities and has competitive advantages.

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