Chip Stocks Tumble 4.3% as TSMC's 77% Profit Surge Fails to Impress
SOX has more than doubled off its 52-week low of $5,418.316.
Summary
The PHLX Semiconductor Index fell 4.3% on Thursday, its second straight daily loss, as investors sold chip stocks globally despite TSMC reporting 77% earnings growth. The selloff hit Asian markets hard, with South Korea's KOSPI down over 6% and Japan's Nikkei off nearly 3%. The move signals that AI-driven valuations are now priced for perfection—any earnings report that isn't flawless triggers selling. This follows a volatile period for the SOX, including an 8% plunge on June 23, and comes amid escalating Middle East tensions and rising Treasury yields. The index's decline reflects a broader rotation out of high-flying tech names as earnings season ramps up.
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: Reuters.