Semiconductors have closed lower for eight straight trading days, wiping out around $2 trillion in market value. The sector fell 11% in a week, and SOXX has pulled back more than a quarter from its June peak. The Nasdaq fell a little over 4% over the same period. The index still looks close to its highs, but the most crowded trade underneath has already been thoroughly dismantled.
The ranking by losses is interesting. Memory stocks fared worst on Friday: Seagate fell more than 7%, SanDisk and Western Digital were both down nearly 7%, and Micron dropped more than 5%. Nvidia, by contrast, fell only a little over 1%. Within the same sector, there was a five- or six-point gap between the leaders and the rest of the supply chain. It’s clear at a glance who’s getting hit and who’s still holding up.
This is the longest losing streak since 2008, but the story is still the same old AI story. The real test isn’t the losses on the leaderboard. What matters is whether hardware orders keep coming through, as we’ll find out from next week’s earnings reports and GTC.
The ranking by losses is interesting. Memory stocks fared worst on Friday: Seagate fell more than 7%, SanDisk and Western Digital were both down nearly 7%, and Micron dropped more than 5%. Nvidia, by contrast, fell only a little over 1%. Within the same sector, there was a five- or six-point gap between the leaders and the rest of the supply chain. It’s clear at a glance who’s getting hit and who’s still holding up.
This is the longest losing streak since 2008, but the story is still the same old AI story. The real test isn’t the losses on the leaderboard. What matters is whether hardware orders keep coming through, as we’ll find out from next week’s earnings reports and GTC.