Chip Stocks Tumble 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 sank more than 4% on Thursday, extending losses for a second day, as TSMC's 77% earnings growth failed to meet sky-high AI expectations. The sell-off rippled globally: South Korea's KOSPI dropped over 6% and Japan's Nikkei fell nearly 3%. The reaction signals that AI-fueled chip valuations now demand flawless execution—any shortfall triggers aggressive profit-taking. This follows a volatile stretch for SOX, including an 8% plunge on June 23 and a nearly 8% surge on June 11. With SK Hynix planning a $28 billion U.S. listing, the sector faces potential dilution and shifting capital flows. The index's sharp decline today underscores fragile sentiment and the risk of further downside if upcoming earnings from other chipmakers similarly underwhelm.
At the time of this announcement, SOX was trading at $11,860.34 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.