Archive · 18 Jul 2026
US Chip Index Enters Bear Market
On Friday, July 18, the US stock market saw a big drop.
The Philadelphia Semiconductor Index, which tracks chip stocks, fell enough to enter a 'bear market,' meaning it's lost over 20% from its highest point.
This happened because investors are worried about whether big tech companies, like those making AI, will make enough money from their huge investments.
Other major indices like the Dow Jones, S&P 500, and Nasdaq also fell.
Some chip stocks, like Micron and Western Digital, have lost a lot of value recently.
Even companies that raised their spending and revenue predictions, like Taiwan Semiconductor Manufacturing Company, saw their stock prices drop.
Experts think the market needs to see more proof that these big investments will pay off before things improve.
The Philadelphia Semiconductor Index fell 1.5% on Friday, entering a bear market.
Major indices like the Dow Jones, S&P 500, and Nasdaq also fell, ending the week with losses.
Chip stocks like Marvell, ARM Holdings, and Intel have dropped over 30% from their peaks.
Concerns about the return on investment for hyperscalers and elevated valuations are driving the sell-off.
Memory chip stocks and Taiwan Semiconductor Manufacturing Company have also seen significant declines.
- Who
- US chip stocks, major indices, hyperscalers, chip companies
- What
- Market sell-off, bear market territory for chip index
- When
- Friday, July 18
- Where
- Wall Street, US markets
- Why
- Concerns over ROI for hyperscalers, elevated valuations, and rapid stock run-up
- Date
- Friday, July 18
- Philadelphia Semiconductor Index
- Fell 1.5%
- Dow Jones
- Fell 0.9% for the week
- S&P 500
- Fell 1.6% for the week
- Nasdaq Composite
- Fell 3% for the week
- VanEck Semiconductor ETF
- Dropped 9% in the last four weeks
- Memory Chip Stocks
- Shed 30% to 35% from peak
- Taiwan Semiconductor Manufacturing Company
- Down for seven straight sessions
