The semiconductor trade was the easiest money on Wall Street for six months. Then it wasn’t.
After rallying approximately 24% year-to-date through the first half of 2026, chip stocks ran headfirst into a wall of profit-taking, cautious corporate guidance, and valuation anxiety. The Philadelphia SE Semiconductor Index, better known as the SOX, suffered its largest single-day drop since March 2020, erasing over $1 trillion in market value.
The June reckoning
June 5, 2026, was the day the music stopped, at least temporarily. The Nasdaq fell 4% that session, its worst daily performance since April 2025, driven in part by concerns over conservative forecasts from Broadcom.
The damage was spread across the sector’s biggest names. AMD’s stock dropped 10.86%, closing at $466.38. Intel fell 11.28%, finishing the day at $99.17. South Korean chip stocks plummeted between 9% and 12% during the same period. Micron experienced a 13.6% decline in late June.
