Philadelphia Semiconductor Index ends its longest losing streak
More than $2 trillion has already been wiped from the value of chip stocks.
Published
A run of this length makes it harder to call the move a pause within an uptrend. It points to a sustained drop rather than a short dip. The erosion of more than $2 trillion in chip stock value had already been flagged, and the length of the decline adds duration risk on top of earlier concerns about company balance sheets and cash flow. A run like this strengthens the case that investors are repricing their assumptions about AI spending across the chip sector. Large technology companies carry heavy weight in broad indexes, so a long slide in chips keeps pressure on growth-focused benchmarks. Software and hardware companies would be the most exposed if a run like this went on.
Investing.com reported that on Oct 16 the index fell amid reported concerns over AI spending, financing costs and hotter-than-expected US inflation.
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