Unprecedented Loss for Chip Stocks: $1.6 Trillion Wiped Out in Six-Day Streak
The global semiconductor sector is reeling from its worst multi-day selloff in over a year, with chip stocks collectively shedding an estimated $1.6 trillion in market value over six consecutive sessions. The Philadelphia Semiconductor Index (SOX) tumbled 4.3% on October 14 alone, extending a losing streak not seen since May 2025.
Among the biggest casualties, Arm Holdings plunged 21%, Applied Materials dropped 16%, and Intel fell 13% over the period. Memory chip titans Samsung Electronics and SK Hynix each fell more than 6% in premarket trading on October 15, adding to days of losses driven by fears over slowing AI data-center investment.
Analysts point to a toxic mix of hotter-than-expected U.S. inflation data, rising interest rate bets, and intensifying competition from Chinese chip maker ChangXin Memory Technologies (CXMT), which recently announced progress on a new chip architecture designed to increase memory density. Broadcom CEO Hock Tan stoked further concern by comparing some AI-boom investors to gamblers and warning of potential funding constraints in the sector.
Despite the carnage, some analysts urge calm. UBS Chief Investment Office described the selloff as “a recalibration of expectations rather than a fundamental break in the AI investment story.” Meanwhile, CNBC’s Jim Cramer argued that strong underlying demand — including Micron’s 26 long-term customer agreements covering 35% of revenue through 2030 — makes the sector’s fundamentals sound.
Source: Quartz – Chip stocks are on pace to erase $1 trillion as AI selloff deepens