Of late, some air has come out of the semiconductor bubble, but that's been to the benefit of the Direxion Daily Semiconductor Bear 3X Shares (SOXS). Entering July 27, the leveraged bearish ETF boasted a one-month gain of nearly 58%.
Chip stocks rallied this week on a wave of strong tech earnings, and investors rewarded semiconductor ETFs with a rush of new cash. Three funds tracking the chip sector ranked among those pulling in the most new money, according to FactSet flow data.
Susquehanna analyst Mehdi Hosseini believes the company's growth is constrained even as KLA issues an upbeat forecast.
KLA Corp forecast first-quarter revenue and profit above Wall Street estimates on Tuesday, betting that continued investment in AI infrastructure would sustain strong demand for its chipmaking tools.
Semiconductor equipment vendor KLA beat Wall Street's targets for its fiscal Q4 and with its outlook. But KLAC stock fell.
For the quarter, total revenues were $3.66 billion, above the midpoint of the guidance range; GAAP diluted EPS was $1.04, at the upper end of the guidance range, and non-GAAP diluted EPS was $1.05, at the upper end of the guidance range; Cash flow from operating activities for the quarter and fiscal year was $906.4 million and $4.14 billion, respectively, and free cash flow was $817.1 million a...
The semiconductor market, which has significantly outperformed the broader market in 2026 is seeing a pullback in July. The factors driving this rise include aggressive profit-taking, valuation concerns, and unwinding leveraged trades following a historic AI-fueled rally.