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

Seagate Technology Holdings

17/07/2026 15:05

Updates
** Shares of U.S. semiconductor-related companies drop with the Philadelphia SE Semiconductor index .SOX set for a 12.5% drop for the week, its biggest weekly fall since March 2025 
** The index also falls more than 20% from its all-time closing high
** Chipmakers globally are under pressure as investors assess the durability of the artificial intelligence-driven rally 
** Chinese AI startup Moonshot unveils world's largest open AI model, closing in on U.S. rivals
** Nvidia NVDA.O falls 3.9%, Apple AAPL.O overtaking it to become world's most valuable company

     ** Advanced Micro Devices AMD.O down 7.5%, Intel INTC.O sheds 6.4%, Broadcom AVGO.O drops 3.7%, Marvell Technology MRVL.O off 3.9%, Qualcomm QCOM.O down 1.6%
** Memory chipmakers fall: Micron Technology MU.O drops 3.7%, Sandisk SNDK.O off 4.2%, Western Digital WDC.O falls 6.6% and Seagate Technology STX.O down 5%
** U.S.-listed shares of Korean chip giant SK Hynix SKHY.O drop 0.3% to $151.8, trading close to its U.S. offering price of $149 
** Analog chipmakers slide: Texas Instruments TXN.O down 3.5%, Analog Devices ADI.O off 2.7%, NXP Semiconductors NXPI.O declines 2.6% and ON Semiconductor ON.O sheds 2.7% 
** Chip-making equipment companies Applied Materials AMAT.O, Lam Research LRCX.O and KLA Corp KLAC.O fall between 5% and 7.2%
** VanEck Semiconductor ETF SMH.O falls 3.9%, iShares Semiconductor ETF SOXX.O drops 4% 
** Despite recent weakness, the Philadelphia index is up 61.4% YTD 
     

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