US chip index on pace for biggest weekly drop in over 15 months as AI rally fizzles out

Seagate Technology Holdings

17/07/2026 10:32

** Shares of U.S. semiconductor-related companies drop between 3% and 5% in premarket trading with the Philadelphia SE Semiconductor index .SOX set for an 8.5% drop for the week, its biggest weekly fall since March 2025 
** Chipmakers globally are under pressure as investors assess the durability of the artificial intelligence-driven rally 
** Nvidia NVDA.O falls 3%, Advanced Micro Devices AMD.O down 4%, Intel INTC.O sheds 4.6%, Broadcom AVGO.O drops 2.4%, Marvell Technology MRVL.O off 3.8%, Qualcomm QCOM.O down 3%
** Apple AAPL.O is set to overtake Nvidia to become world's most valuable company, if losses hold 
** Memory chipmakers fall: Micron Technology MU.O drops 4%, Sandisk SNDK.O off 5.4%, Western Digital WDC.O falls 5.6% and Seagate Technology STX.O down 3.7%
** U.S.-listed shares of Korean chip giant SK Hynix SKHY.O drop 3.3% to $147.3, on pace to fall below its U.S. offering price of $149 for the first time 
** Analog chipmakers slide: Texas Instruments TXN.O down 2.8%, Analog Devices ADI.O off 2.5%, NXP Semiconductors NXPI.O declines 2.7% and ON Semiconductor ON.O shed 4.2% 
** Chip-making equipment companies Applied Materials AMAT.O, Lam Research LRCX.O and KLA Corp KLAC.O fall between 4.9 and 6.1%
** VanEck Semiconductor ETF SMH.O falls 3.6%, iShares Semiconductor ETF SOXX.O drops 4.1% 
** Despite recent weakness, the Philadelphia index is up 67.5% YTD as of last close 


 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com;))