Chip Stocks End Worst Losing Streak in Over 20 Years With Monday Rebound
The Philadelphia semiconductor index broke an eight-session slide that erased about $2 trillion in market value, as Intel, AMD, Nvidia and Micron all rallied and the Nasdaq gained 1.1% at the close.
The chip sector’s worst losing streak in more than 20 years snapped on Monday, as technology stocks rebounded after a bruising selloff that erased roughly $2 trillion in semiconductor market value.
The Philadelphia Semiconductor Index, known as the SOX, had fallen for eight straight sessions through Friday, according to Reuters. The index lost 11.4% last week alone, its biggest weekly drop since March 2025, as investors sold chip names on worries that hot inflation could raise the odds of Federal Reserve rate hikes, and doubts about whether heavy spending on artificial intelligence will pay off.
Monday brought relief. The iShares Semiconductor ETF, the largest exchange-traded fund tracking U.S. chip companies, rose 2.5% after falling for nine days, its worst run since May 2006, Barron’s reported. Lower Treasury yields and easing crude oil prices helped support the bounce, Reuters said.
Intel leads the advance
Intel was among the day’s strongest performers. The stock closed up 2.4% at $92.03, its biggest percentage gain since Sept. 30, according to Dow Jones Market Data cited by Barron’s. It was also the most actively traded stock in both the S&P 500 and the Nasdaq 100 on Monday.
The chipmaker got a boost from J.P. Morgan, which upgraded Intel to “neutral” from “underweight,” citing expected positive earnings revisions tied to demand for artificial intelligence and limited chip supply, Reuters reported. Intel had tumbled more than 14% the week before.
Other chip names joined the climb. Advanced Micro Devices closed up 1.8% at $536.05, its biggest gain since Oct. 13; Micron Technology rose nearly 3% to $904.90, its biggest gain since Oct. 7; and Nvidia added 1.4% to close at $217.09, its biggest gain since Oct. 5, according to Barron’s. Marvell Technology climbed 4%, Bloom Energy rose 2.2% and Applied Optoelectronics closed up 3.6%.
Nasdaq recovers, but caution remains
The broader market followed. The Nasdaq Composite closed up 1.1% on Monday after falling 2.1% on Friday and finishing last week down 4.5%, its worst week since June, Barron’s reported. The index is still up 13.7% this year and 15% over the past 12 months.
“Things are looking a lot cheerier than they were at the close on Friday,” said Chris Beauchamp, an analyst at IG, quoted by Barron’s. “After yet another lurch lower for tech, buyers have once again appeared.”
Analysts cautioned that one day does not settle the debate. Barron’s noted it is probably too early to say that worries about AI-related debt have eased. The real test comes this week: Lam Research, Texas Instruments and Western Digital are set to report quarterly results, along with Meta, Tesla and SpaceX, Reuters reported. Despite the recent slide, the Philadelphia chip index is up 57.2% so far this year, according to Reuters.
Reporting based on coverage by Barron’s and Reuters.
