The Philadelphia Semiconductor Index has fallen into a bear market, and AI chip stocks have experienced a sharp correction.
On July 17, 2026, the Philadelphia Semiconductor Index plunged by approximately 10% this week, marking the largest single-week decline in over a year. It has fallen by more than 20% since its high point in June, officially entering the bear market zone. AI leading stocks such as NVIDIA, Broadcom, and Qualcomm have all been sold off, while storage chip stocks like Micron and SanDisk have experienced significant declines. Analysts believe the correction is mainly due to profit-taking and the examination of the sustainability of AI capital expenditures. The release of a large-scale open-source model by the Chinese AI startup "The Shadow Side of the Moon" has also raised concerns among the market about the huge return rate of AI investments.
