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Semiconductor ETF SOXX Drops for Eighth Straight Session as AI Trade Weakens

BearishMedium impact
SOXX$514.71 −0.91%AMD$562.23 −1.50%INTC$95.37 −2.80%NVDA$217.23 −1.84%AVGO$344.33 −0.55%MU$931.24 1.87%

The iShares Semiconductor ETF (SOXX) closed down at $514.71 on Thursday, extending its losing streak to eight consecutive trading sessions. The prolonged decline marks the fund's longest downturn since September 2015, falling 12.6% from its October 2 high of $588.90. Despite the recent pullback, the semiconductor fund remains up 70.9% year to date.

Investor sentiment around chipmakers has turned cautious as market participants question whether heavy capital investments in artificial intelligence can deliver sufficient financial returns. Rising borrowing costs and substantial capital requirements are putting pressure on infrastructure builders. Specialized cloud infrastructure providers face heightened financing challenges, highlighted by a sharp slide in CoreWeave stock and surging bond yields. Major fund components including Advanced Micro Devices, Inc. (AMD), Intel Corporation (INTC), NVIDIA Corporation (NVDA), and Broadcom Inc. (AVGO) have all experienced downward pressure.

Market participants are closely watching whether artificial intelligence demand will justify ongoing buildout costs or if high debt levels will continue to weigh on the semiconductor supply chain. The coming quarters will test whether major chip holdings can sustain earnings growth amid elevated financing expenses.

Key points

  • The iShares Semiconductor ETF (SOXX) extended its losing streak to eight sessions, its longest since September 2015.
  • SOXX closed at $514.71 on Thursday, down 12.6% from its October 2 close of $588.90.
  • Concerns over high borrowing costs and uncertain AI demand are pressuring chipmaker valuations.
  • CoreWeave stock fell more than 15% on Wednesday while yields on its 2031 bonds surpassed 16%.
  • Despite the recent eight-day slump, SOXX remains up 70.9% year to date.

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

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Questions and answers

Why is the iShares Semiconductor ETF falling?

The ETF is declining due to investor concerns that higher borrowing costs and massive capital requirements could slow artificial intelligence infrastructure spending.

How long is SOXX's current losing streak?

The ETF has fallen for eight consecutive sessions, marking its longest losing streak since September 2015.

How much has SOXX gained year to date?

Despite its recent eight-day drop, the ETF remains up 70.9% year to date.