Chip Index Enters Bear Market as AI Doubts and China Rival Spark Sell-Off
SOX has more than doubled off its 52-week low of $5,418.316.
Summary
The PHLX Semiconductor Index (SOX) fell into a bear market on Friday, down over 20% from its mid-June record high, as a confluence of AI-related fears hit chip stocks. A new Chinese AI model from Moonshot, claimed to rival OpenAI and Anthropic, revived memories of the DeepSeek sell-off, while mounting concerns over hyperscaler ROI on massive capex added pressure. Marvell, ARM, and Intel have each plunged more than 30% from their peaks, and memory names like Micron and Western Digital are down 30-35%. Even TSMC, which raised guidance, has fallen for seven straight sessions. The next major test comes with Alphabet's earnings on July 22, followed by Microsoft, Amazon, and Meta the week after.
At the time of this announcement, SOX was trading at $11,673.89 on NASDAQ in the Technology sector. The 52-week trading range was $5,418.32 to $14,655.29. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: CNBC TV18.