Semiconductor Bear Market Deepening
Semiconductor stocks remain vulnerable despite modest recovery, with the sector significantly below recent peaks indicating incomplete stabilization
Too little corroboration in the last 3 days to call a trend (6 articles). Watching for it to gain traction.
Semiconductor stocks have recovered modestly from recent lows but remain significantly below their recent peaks, indicating the sector has not yet stabilized at sustainable levels. Investors cite deteriorating macro conditions as reasons for maintaining cautious positions despite company-specific fundamentals appearing intact.
Incomplete sector stabilization typically keeps capital allocation cautious, as investors remain uncertain whether current prices represent true support or temporary bounces within a broader downtrend. This uncertainty suppresses new capital inflows and keeps valuations compressed until clearer evidence of stabilization emerges.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"I sold my earlier position because the macro tape turned ugly. MRVL itself still checks most of my company-specific boxes. That said, I think the macro warrants a downgrade to a hold."
"I don't think we have seen enough of a correction within semis. With SMH breaking below US$580, how much further downside do you see? The measured move for it would be closer to about US$480, US$460, and that that can be painful."
"However, the broader tech mood was still cautious, with the NASDAQ (-0.05%) and Mag-7 (-0.07%) inching lower."
"the heavyweight Philadelphia SE Semiconductor Index ended July 17 more than 20 per cent below its late-June record high, confirming a bear-market decline. In particular, investors will anxiously monitor results from chipmakers such as Intel and Texas Instruments for any encouraging signs"
"Yardeni does not believe the sell-off has bottomed, explicitly warning that the 'S&P 500 Semiconductors stock price index is likely to fall another 12% to its 200-day moving average.' International margin calls and new competitive pressures from Chinese AI labs have rattled momentum chip names."
"The VanEck Semiconductor ETF gained about 0.6%. However, the semiconductor ETF was still around 12% below its recent peak, showing the sector has not fully recovered."