SOX Plunges 21% in July as AI Spending Fears Rattle Chip Stocks
Updated
Updated · Seeking Alpha · Aug 3
SOX Plunges 21% in July as AI Spending Fears Rattle Chip Stocks
3 articles · Updated · Seeking Alpha · Aug 3
Summary
The Philadelphia Semiconductor Index logged its worst month since October 2008, dropping 21% in July as the market’s favored chip trade abruptly reversed.
Investor anxiety centered on whether the heavy wave of artificial-intelligence spending can continue, undermining the rally that had driven semiconductor shares this year.
Volatility surged with the 30-stock index closing up or down at least 4% on nearly half of July’s trading days.
All 22 sessions saw intraday swings of at least 2%, a streak not seen since 2020, underscoring how sharply sentiment has turned on the sector.