Chip Stocks Snap Eight-Day Losing Streak as AI Names Rebound

Semiconductor stocks rebounded Monday, snapping an eight-session losing streak — their longest in eight years.

The Philadelphia Semiconductor Index, known as SOX, had plunged 15.7 percent over the previous eight sessions before climbing 2.7 percent on Monday. The iShares Semiconductor ETF, SOXX, rose 3 percent to around $508.

Individual names rose across the board. Advanced Micro Devices gained 3.5 percent and Nvidia added 1.7 percent. Micron Technology rose 3.9 percent and Arm Holdings climbed 2.2 percent. Intel jumped nearly 5 percent after JPMorgan upgraded the chipmaker to neutral from underweight. Sandisk surged 7 percent.

The selloff began with questions about the sustainability of artificial intelligence spending. Reports about the finances of privately held OpenAI and Anthropic unsettled investors, and September’s hotter-than-expected consumer price data added fears of further interest rate increases.

Attention now turns to this week’s earnings. Netflix reports Tuesday after the market closes, and Meta’s earnings plus Nvidia’s Berlin conference are scheduled for Wednesday. Results from Texas Instruments and Lam Research are also due.

TD Cowen analyst Joshua Buchalter struck a positive note, saying chip stocks are set for a beat-and-raise season. “Supply is still the gating factor, not demand,” he said. Richard Windsor, founder of research firm Radio Free Mobile, said Meta’s earnings and Nvidia’s conference would be “crucial when it comes to restoring confidence that the AI build-out will deliver on the promises that it has made.”

The S&P 500 rose 0.9 percent and the Nasdaq Composite gained 1.8 percent on Monday. The 10-year Treasury yield held around 5.14 to 5.15 percent.