QUICK SPARK: Meet the 15 Worst-Performing Chip Stocks in the Last 7 Sessions
The chips that powered the artificial-intelligence rally are now leading its retreat.
The PHLX Semiconductor Index, the main benchmark for U.S.-listed chipmakers, which is closely tracked by the Invesco PHLX Semiconductor ETF (NYSE:SOXQ), has fallen for seven straight sessions.
That has happened only 15 times since 1994.
The index is down nearly 14% from its Oct. 6 close.
• Invesco PHLX Semiconductor ETF stock is facing resistance. Why is SOXQ stock retreating?
According to Benzinga Pro data, these are the worst-performing stocks over the past seven sessions among companies with at least a $50 billion market cap.
| Company | 7-session change |
|---|---|
| SK Hynix Inc. (NASDAQ:SKHY) | -24.34% |
| Arm Holdings plc (NASDAQ:ARM) | -21.42% |
| Coherent Corp. (NYSE:COHR) | -21.08% |
| Nebius Group N.V. (NASDAQ:NBIS) | -20.02% |
| Seagate Technology Holdings plc (NASDAQ:STX) | -19.56% |
| Teradyne Inc. (NASDAQ:TER) | -19.14% |
| Lumentum Holdings Inc. (NASDAQ:LITE) | -17.89% |
| SanDisk Corp. (NASDAQ:SNDK) | -17.65% |
| Applied Materials Inc. (NASDAQ:AMAT) | -17.64% |
| Western Digital Corp. (NASDAQ:WDC) | -17.56% |
| Astera Labs Inc. (NASDAQ:ALAB) | -17.13% |
| Lam Research Corp. (NASDAQ:LRCX) | -17.03% |
| Monolithic Power Systems Inc. (NASDAQ:MPWR) | -16.00% |
| Intel Corp. (NASDAQ:INTC) | -15.55% |
| Micron Technology Inc. (NASDAQ:MU) | -14.08% |
Two forces are behind the sell-off.
China’s ChangXin Memory Technologies reported progress on a denser memory chip design, raising fears of future oversupply.
Meanwhile, U.S. producer prices rose 6.3% from a year earlier in September, the fastest pace since December 2022. That keeps a Federal Reserve rate hike on the table.
Higher rates make it more expensive to borrow and build AI data centers. As a result, investors are dumping the companies that sell memory, storage and chipmaking tools to those data centers.
The Roundhill Memory ETF (NYSE:DRAM) has lost 21% since its Oct. 5 close.
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