Semiconductor Profit-Taking After Rally
Semiconductor stocks are experiencing profit-taking after substantial year-to-date gains despite strong fundamentals
Too little corroboration in the last 3 days to call a trend (4 articles). Watching for it to gain traction.
"South Korean chipmaker SK Hynix reported quarterly results that failed to meet investor expectations, revealing gaps between anticipated and actual returns."
"the Philadelphia SE Semiconductor Index falling by 1.0%, marking its most significant weekly decline since early April. The Index is down around 17% in July, although it remains up 63.2% year-to-date."
"An index of semiconductors ended 5.4 per cent lower on July 2, falling sharply for a second day. Investors are likely taking profits in chip stocks following this year's strong gains, said Bruce Zaro, managing director at Granite Wealth Management in Plymouth, Massachusetts. The semiconductor index remains up about 78 per cent for the year to date."
"But more drops for computer chip companies weighed on indexes. They've come under pressure because of worries that their stock prices shot too high in the frenzy around AI and that all the spending on chips and data centers may not result in as much profit and productivity growth as hoped."