AI chip stocks stumble, Philadelphia semiconductor index down nearly 8%
After months of soaring thanks to the AI boom, big chip stocks like Micron, AMD, Intel, and Sandisk just hit a speed bump.
The Philadelphia Semiconductor Index dropped nearly 8% last week, its biggest weekly dip in over a year, as investors started wondering if the AI hype can really keep up this pace.
High prices and some profit-taking played a part in the pullback.
Chip stocks deliver record Q2 gains
Even with this recent drop, chip stocks are still having their best quarter ever. The index is up 81% for Q2 and an eye-popping 94% for 2026 so far, mostly fueled by huge AI investments from tech giants like Microsoft and Meta.
Sandisk has been the surprise star with a massive 764% return this year, while Micron isn't far behind at 301%.
Meanwhile, SK Hynix is eyeing a $29.4 billion US listing, and NVIDIA remains king with its $4.5 trillion market cap, even if it's only up about 4.5% this year.