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.
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.
Semiconductor exchange-traded funds have gained more than 25% this year. Intel Corporation's (INTC) second-quarter earnings report after today's close could test whether that rally continues.
Texas Instruments stock fell more than 5% in premarket trading, despite reporting strong quarterly earnings and raising its forward guidance. TXN dropped to $280, leaving the stock more than 16% below its highest level of the year.
Alphabet and Tesla shares fall as investors worry about a rally in oil prices that could drive inflation higher.
Texas Instruments shares were falling while STMicroelectronics stock was diving on Thursday, after both makers of analog semiconductors struggled to meet heightened expectations after reporting strong demand in the second quarter.
