Chip stocks have closed lower for eight straight sessions, their longest losing streak in 16 years, according to Barchart. The iShares Semiconductor ETF (SOXX) closed Thursday at $514.71, nearly 14% off its October high.
Thursday also brought the first sign of resistance. SOXX briefly slipped under $496, then clawed back to close above its open on the heaviest volume in months.
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What Exactly Are Investors Selling？
SOXX is a $44.7 billion BlackRock fund that tracks the ICE Semiconductor Index, a basket of about 30 US-listed chipmakers. Its 10 largest positions account for roughly 62% of assets.
| Company | Ticker | Weight |
|---|---|---|
| Advanced Micro Devices | AMD | 9.47% |
| Intel | INTC | 8.56% |
| Nvidia | NVDA | 7.83% |
| Micron Technology | MU | 7.45% |
| Broadcom | AVGO | 7.30% |
| Marvell Technology | MRVL | 4.53% |
| Analog Devices | ADI | 4.35% |
| Texas Instruments | TXN | 4.20% |
| KLA | KLAC | 3.98% |
| Qualcomm | QCOM | 3.95% |
SOXX top 10 holdings as of October 15, 2026, per iShares
The biggest names took the heaviest hits. Intel has lost more than 20% in two weeks, while AMD dropped over 5% intraday on October 14.
Why Are Investors Dumping the AI Booms Favorite Chip Stocks？
- AI spending doubts.OpenAI reportedly told investors its annualized revenue neared $50 billion, short of earlier $70 billion estimates. Broadcom CEO Hock Tan has also described some AI investors as gamblers.
- Inflation and rate hikes.September consumer prices rose 3.7% year over year, topping forecasts. Traders now price a 92% chance of another Fed hike this year.
- Asian memory rout.Selling spread from Koreas chip-heavy KOSPI. Meanwhile, progress by Chinese memory maker ChangXin Memory Technologies (CXMT) fueled fears that China is catching up.
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Demand, however, is not the problem. Taiwan Semiconductor Manufacturing Company (TSMC) reported a 68.7% jump in third-quarter profit, yet its US shares still fell 1.8%.
Can Buyers Defend the $500 Zone？
On the daily chart, SOXX trades below its 50-day moving average (MA), which capped rallies in August and September (red arrows). The Relative Strength Index (RSI), a momentum gauge, has fallen to 36, its lowest reading since July.
Thursdays volume spike suggests dip buyers are stepping in. If selling resumes, the 0.5 Fibonacci retracement near $481 is the next major support.
SOXX daily chart Source: Tradingview
Overhead, SOXX must reclaim $523 and the 50-day MA near $540. The bigger barrier sits at $573, the 0.236 Fibonacci level.
UBS reads the sell-off as a reset:
“More of a recalibration of expectations than a fundamental break in the AI investment story.”
JPMorgan strategists also flagged a possible inflection point. Yet Big Tech plans roughly $800 billion in capital spending this year, per Goldman Sachs. The next leg for chips may hinge on borrowing costs, not demand.