Chip Selloff Deepens: Kioxia Down 50% From Peak, TSMC Falls Despite Solid Earnings
SOX has more than doubled off its 52-week low of $5,418.316.
Summary
The semiconductor selloff is accelerating into its second day, with the PHLX Semiconductor Index now down roughly 19% from its June peak. Kioxia has plunged 50% from its record high, and TSMC dropped over 3% despite reporting 68% year-on-year revenue growth, as a higher spending forecast spooked investors already questioning AI ROI. The rout is spreading beyond chips: Netflix fell 9% on slowing sales growth, and Alphabet sank 4.4% on reports of a delayed flagship AI model, reinforcing fears that AI infrastructure spending may not generate expected returns. Japan's Nikkei 225 fell another 3%, and the yen's slide to a 40-year low of 162.40 per dollar prompted fresh intervention warnings, adding to the risk-off tone. This follows a volatile period for the SOX, including an 8% plunge on June 23 and a 6.8% surge on June 8, but the current selloff is broader and tied to a fundamental reassessment of AI valuations.
At the time of this announcement, SOX was trading at $11,867.50 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: Binance News.