The PHLX Semiconductor Sector Index, better known as the SOX, has ripped 55% higher since the start of 2026. That kind of rally would normally have fund managers popping champagne. Instead, they’re reaching for the antacids.
The index, which tracks 30 of the biggest names in the semiconductor space, has been riding a wave of capital pouring into artificial intelligence infrastructure.
The sell-off signals
The cracks showed up on June 5, 2026. Chip stocks helped drag the Nasdaq Composite down 4.18% in a single session, its worst one-day performance since April 2025.
Goldman Sachs has identified semiconductor and equipment stocks as the top net-sold US subsector among its hedge fund clients in 2026.
