SOX Index Erases $1.6 Trillion in 6-Day Slide as Rate and AI Cost Fears Mount
Updated
Updated · Bloomberg · Oct 15
SOX Index Erases $1.6 Trillion in 6-Day Slide as Rate and AI Cost Fears Mount
3 articles · Updated · Bloomberg · Oct 15
Summary
$1.6 trillion in semiconductor market value was wiped out over six sessions as the Philadelphia Semiconductor Index extended its losing streak to six days and dropped 4.3% on Wednesday.
The SOX is now down 12% in that stretch, its longest slide since May 2025, as investors reassess chip shares amid higher interest-rate fears, stretched valuations and the heavy cost of building AI infrastructure.
That retreat deepens a broader unwind in AI-linked equities already seen across global markets, after hotter US inflation data fueled expectations of further Federal Reserve tightening.
The latest drop adds pressure to a trade that had been one of Wall Street's biggest winners, raising fresh questions about how long investors will fund debt-heavy AI expansion at current valuations.