FreeTheAI

iShares Semiconductor ETF Drops Over 4% as Chip Selloff Extends Losing Streak

BearishHigh impact
SOXX$493.39 −4.14%CRWV$61.39 −11.91%AMAT$409.29 −4.82%ASX$39.53 −5.63%SKHY$136.49 −6.58%CRDO$169.70 −4.93%

The iShares Semiconductor ETF (NASDAQ:SOXX) dropped more than 4% on Friday, marking its ninth consecutive session of declines. The exchange-traded fund fell nearly 12% for the week, recording its sharpest weekly decline since April 2025. Market breadth across the sector was overwhelmingly negative, with 32 of the fund's 34 constituent stocks closing the week in lower territory.

The broad downturn across semiconductor equities deepened amid growing concerns regarding the pace of artificial intelligence infrastructure expansion and credit worries related to CoreWeave, Inc. Class A (NASDAQ:CRWV). Sentiment was further weighed down by the latest Consumer Price Index data, which showed higher-than-anticipated inflation and raised concerns about potential monetary tightening by the Federal Reserve. Major sector holdings posted steep losses, with Applied Materials, Inc. (NASDAQ:AMAT), ASE Technology Holding Co., Ltd. Sponsored ADR (NYSE:ASX), SK hynix Inc. Sponsored ADR (NASDAQ:SKHY), Credo Technology Group Holding Ltd. (NASDAQ:CRDO), and Teradyne (NASDAQ:TER) all declining by more than 15% over the week.

Investors will monitor ongoing developments surrounding Federal Reserve policy decisions, inflation metrics, and demand trends within the artificial intelligence buildout to see if semiconductor valuations can stabilize.

Key points

  • The iShares Semiconductor ETF (NASDAQ:SOXX) fell over 4% on Friday, extending its losing streak to nine consecutive sessions.
  • The ETF lost nearly 12% during the week, marking its worst weekly performance since April 2025 with 32 of 34 constituents ending lower.
  • Worries over AI spending pace, CoreWeave, Inc. Class A (NASDAQ:CRWV) credit concerns, and hot CPI inflation data drove the selloff.
  • Five fund holdings, including Applied Materials, Inc. (NASDAQ:AMAT) and SK hynix Inc. Sponsored ADR (NASDAQ:SKHY), dropped over 15% on the week.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

How we writeDisclaimer

Questions and answers

Why did the iShares Semiconductor ETF drop this week?

The ETF fell nearly 12% due to worries over the pace of AI infrastructure spending, credit concerns affecting CoreWeave, and a hotter-than-expected CPI report that raised fears of tighter Federal Reserve policy.

How many consecutive days has SOXX been declining?

The iShares Semiconductor ETF marked its ninth consecutive session of declines on Friday, completing its longest losing streak since May 2026.

Which semiconductor stocks suffered the largest losses this week?

Applied Materials, ASE Technology, SK Hynix, Credo Technology, and Teradyne were the five biggest laggards in the ETF, each losing more than 15% over the week.