The PHLX Semiconductor Index, better known as SOX, has officially crossed into bear market territory. The index fell nearly 20% from its late-June peak by mid-July, erasing roughly $1.5 trillion in market value in a matter of weeks.
To put that number in perspective, $1.5 trillion is larger than the entire GDP of Spain. It vanished from chip stocks in about three weeks.
From moonshot to meltdown
The correction is especially jarring given what preceded it. The SOX had surged approximately 83% on the back of insatiable demand for AI chips.
Memory-chip makers got hit the hardest. Micron, Samsung, and SK Hynix all dropped more than 20% by July 7, entering bear market territory before the broader index caught up.
