1 month ago
Chip Stocks Plunge, Volatility Rises, Market Uncertainty Grows
Semiconductor stocks, which are the companies that make computer chips, fell a lot in July.
The index that tracks 30 big chip makers dropped 21%, the biggest fall since 2008.
Prices jumped up and down a lot every day, more than any time since 2020.
People are worried that the big money being spent on artificial intelligence might not keep going.
Some big chip makers like TSMC, Micron, and Intel lost billions of dollars in value.
Even though the market is shaky, some investors are still buying chips because they think the companies can make a lot of money in the future.
Retail investors put a record $12 billion into chip ETFs last week.
Analysts say the future of chip stocks is uncertain, but the industry still expects strong earnings from companies like Nvidia and Broadcom.
Semiconductor index SOX fell 21% in July, worst month since 2008.
Intraday swings of at least 2% occurred every session, unprecedented since 2020.
Investors question AI spending sustainability amid rising scrutiny and open‑source competition.
Major chipmakers like TSMC, Micron, Intel lost billions in market cap.
Retail investors poured record $12B into semiconductor ETFs during last week.
- Who
- Investors and analysts in the semiconductor sector
- What
- Sharp decline and volatility in semiconductor stocks
- Where
- Global semiconductor market, Philadelphia Stock Exchange SOX index
- When
- July 2023
- Why
- Concerns over AI spending sustainability, competition, and margin pressures
Key facts
- Index
- Philadelphia Stock Exchange Semiconductor Index (SOX)
- July Decline
- 21% drop
- Market Cap Loss
- $2.2 trillion
- Retail ETF Inflows
- $12 billion
- Top Losers
- TSMC, Micron, Intel
Quotes
Charles Lemonides
Chief investment officer at Valueworks
“"It wouldn’t surprise me if, after this selloff, we saw a pretty solid bounce from chips, but I think it is unlikely that they will lead the next leg of the bull market"”
livemint.com
“"The volatility really speaks to the level of general uncertainty and how no one knows how this is going to play out"”
livemint.com
Eric Balchunas
Bloomberg Intelligence analyst
“"Semiconductor ETFs have never seen this level of activity in either flows or trading volume"”
livemint.com
