The Philadelphia SE Semiconductor Index posts its worst weekly decline since March 2025 amid profit-taking and AI capex concerns.
Semiconductor stocks extended losses this week, with the Philadelphia SE Semiconductor Index falling 11%, its steepest weekly drop in over a year. The decline reflects investor pullback from AI-exposed equities after a rapid rally earlier this year, raising questions about valuation sustainability.
The index has retreated nearly 24% from its late June peak, nearing bear market territory. Year-to-date gains stand at 62%, but rising scrutiny over AI capital expenditure and cyclical demand risks has triggered profit-taking. Nvidia, Qualcomm, and Broadcom each fell 2-3% in early trading Friday.
Global chipmakers faced pressure, with SK Hynix’s U.S.-listed shares down 2.7%. SpaceX also slipped 4% after Starship’s flight test abort, compounding losses below its $135 IPO price.