Camtek drops 8.4% as semiconductor equipment stocks face sector selloff

Camtek Ltd. shares suffered their steepest single-day decline in more than a year, falling 8.44% to $153.88, as a broad rotation out of semiconductor and AI-linked stocks swept across global markets.

"The magnitude of the move reflects a derating of the entire semiconductor equipment space, not a company-specific issue," said Rachel Kim, semiconductor supply chain analyst at Edgen. "Camtek's exposure to advanced packaging inspection makes it a proxy for the AI capex theme, and that theme is under pressure right now."

The Haifa, Israel-based company, which provides automated optical inspection systems for semiconductor packaging and advanced interconnect applications, was caught in a sector-wide downdraft. ON Semiconductor plunged 23.7% after announcing a roughly $7 billion all-stock acquisition of Synaptics, while Micron Technology fell 6.7% amid concerns that rising memory prices are forcing customers like Apple to raise product prices, potentially crimping demand. In Asia, SK Hynix dropped 8.4% and Samsung Electronics sank 5.3%, dragging South Korea's Kospi index 5.8% lower.

Camtek's decline comes as investors reassess the valuation of companies tied to artificial intelligence infrastructure spending. The broader Philadelphia Semiconductor Index has fallen in recent weeks as questions mount about whether AI-related profits can justify the stock prices of companies that have surged over the past two years. Camtek had roughly quadrupled from its 2023 lows before the current pullback, making it vulnerable to profit-taking when sentiment shifts.

The selloff underscores a growing divergence between strong underlying demand for semiconductor equipment and the willingness of investors to pay premium multiples for that exposure. Camtek's next earnings report, expected in late July, will provide a read on whether order momentum from advanced packaging customers remains intact. For now, the stock is trading at levels last seen before the AI-driven rally accelerated in early 2025, and the question is whether the derating has further to run or represents a buying opportunity for investors with a longer time horizon.

This article is for informational purposes only and does not constitute investment advice.