TLDR
- Crinetics Pharmaceuticals doubled after Vertex Pharmaceuticals agreed to buy it for $10 billion in cash
- Rivian dropped 9% after announcing a 75 million share sale to repay a government loan
- Micron fell 5% on fears of a memory chip supply glut from Samsung and SK Hynix spending
- Fiserv jumped up to 8% on reports of talks to sell its STAR Network to major banks
- AI and chip stocks fell broadly in premarket, with Intel down 4.4% and Samsung down nearly 7%
Artificial intelligence and chip stocks fell sharply in premarket trading on Tuesday, July 7. The losses pointed to a quick end to Monday’s rebound.
Samsung Electronics started the slide overnight. The South Korean chipmaker forecast a major profit jump, but investors sold off shares anyway, sending the stock down nearly 7%.
That weakness spread to U.S. markets. Intel fell 4.4% and Micron Technology dropped 5.8% before the opening bell.
Advanced Micro Devices, Corning, Marvell Technology, and Super Micro Computer were also in the red. All have ties to the AI sector.
Nasdaq futures fell, while the Dow held steadier. Investors appear to be taking a closer look at AI stock valuations ahead of economic data due later in the week.
Crinetics Doubles on Vertex Buyout Deal
Crinetics Pharmaceuticals was the biggest gainer of the day by far. Shares jumped 100%, reaching $83.66 in premarket trading.
Vertex Pharmaceuticals agreed to buy Crinetics for $85 per share in an all-cash deal. The total equity value is around $10 billion.
The deal is expected to close in the third quarter of 2026. Vertex said the acquisition will immediately add revenue through the launch of Palsonify, a treatment for acromegaly.
Vertex also pointed to pipeline drug atumelnant as a potential multi-billion-dollar opportunity. The combined assets are expected to generate more than $5 billion in peak annual revenue.
Fiserv also rose, gaining around 6% to 8%. The Wall Street Journal reported that JPMorgan Chase, Bank of America, Wells Fargo, and PNC Financial Services held talks to buy Fiserv’s STAR Network payments business.
Rivian Falls on Share Sale, Micron Drops on Supply Fears
Rivian Automotive was among the biggest losers. Shares fell around 9% after the company said it would sell 75 million Class A shares.
The proceeds will go toward general corporate purposes, including repaying a $4.5 billion loan from the U.S. Department of Energy.
Rivian did report stronger-than-expected revenue guidance for the second quarter. The company estimated $1.55 billion to $1.65 billion in revenue, above the $1.44 billion analyst consensus.
Micron fell around 5%. Investors worried that aggressive spending by Samsung and SK Hynix could lead to a memory chip supply glut and push down prices.
SpaceX slipped 1.3% in premarket. The company was set to join the Nasdaq 100 before the market opened Tuesday.
Stock futures were mixed overall. The day’s moves reflected a market weighing a strong biotech deal against pressure in chips and electric vehicles.
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