69% of S&P 500 Tech Stocks Fall Into Bear Market as Profit-Taking Wave Hits Semiconductors

Over the past two weeks, major technology stocks have entered technical bear market territory following gains in the first half of 2026. According to Morningstar analyst William Kerwin, 69% of S&P 500 information technology index components have declined more than 20% from their 52-week highs, with semiconductor stocks hit particularly hard: Micron (MU-US) down 25%, Broadcom (AVGO-US) down 21%, and Marvell Technology (MRVL-US) down 30%.

The selling wave intensified in early July after Samsung Electronics' preliminary earnings released this week showed operating profit surged 19 times year-over-year, yet disappointed some investors. Kerwin noted this "may signal that memory chip price gains are set to slow," triggering the recent sell-off in memory and storage stocks including Seagate (STX-US), Western Digital (WDC-US), and others, all down more than 20% from recent highs.