NEW YORK, July 17, 2026, 12:25 p.m. EDT (U.S. markets open).
- The iShares Semiconductor ETF NASDAQ:SOXX bounced back 5.4% from its low, but was still down 1.0%.
- By midday, just two out of six leading chip stocks in the comparison were trading higher.
- Taiwan Semiconductor Manufacturing NYSE:TSM dropped 1.9% after increasing its capital budget for 2026.
Semiconductor shares recovered from a 6% morning slide to trade down roughly 1% as of midday Friday. SOXX stood at $525.43 after falling to $498.69 earlier in the session.
The recovery failed to offset the week’s valuation correction. The PHLX Semiconductor Index (INDEXNASDAQ:SOX) surpassed a 20% drop earlier on Friday. It recorded its steepest weekly decline since March 2025.
Six actively traded chip stocks saw a median rebound of 6.2% from intraday lows. The group’s median daily return was negative 0.5%. Micron Technology NASDAQ:MU and Arm Holdings NASDAQ:ARM were the only ones to close higher.
The rebound was strong, but remained narrow. There was still no broad leadership.
| Security | Price | Day move | Rebound from low |
|---|---|---|---|
| iShares Semiconductor ETF NASDAQ:SOXX | $525.43 | down 1.0% | up 5.4% |
| Micron Technology NASDAQ:MU | $884.81 | up 3.7% | up 10.0% |
| Arm Holdings NASDAQ:ARM | $265.27 | up 1.2% | up 9.0% |
| Advanced Micro Devices NASDAQ:AMD | $499.00 | down 0.4% | up 8.3% |
| ASML Holding NASDAQ:ASML | $1,774.56 | down 0.6% | up 4.1% |
| Nvidia NASDAQ:NVDA | $204.43 | down 1.4% | up 3.2% |
| Taiwan Semiconductor Manufacturing NYSE:TSM | $402.00 | down 1.9% | up 4.1% |
Stock prices were captured at approximately 12:04 p.m. EDT. Day fluctuations are measured from Thursday’s close; rebounds are calculated from each session’s lowest point.
Shares fell in early trade after new doubts about AI investment profitability. China’s Moonshot introduced Kimi K3, an open-weight model with 2.8 trillion parameters. The release has renewed worries about returns from U.S. spending on AI.
TSMC continued to see robust underlying demand. Revenue for the second quarter totaled $40.2 billion, with a gross margin of 67.7%. High-performance computing accounted for 66% of total revenue.
Third-quarter revenue was forecast between $44.6 billion and $45.8 billion, suggesting 12% growth from the previous quarter at the midpoint. Chief Executive C.C. Wei said confidence in the “multi-year AI megatrend remains very high.” investor.tsmc.com
TSMC has raised its projected capital expenditures for 2026 to $60 billion-$64 billion, reflecting a sharper focus on the cost of meeting demand. The company reported second-quarter capex of $15.7 billion, accounting for 39% of its revenue.
Management forecasts that overseas fabs will reduce gross margin by 2 to 4 percentage points. The ADR was still down 1.9% at midday.
Toni Meadows, head of investments at BRI Wealth Management, pointed to “rising scrutiny of AI capex sustainability.” She noted that earlier valuations were based on assumptions of almost flawless demand. Reuters
Nvidia marked the smallest rebound among the six stocks, rising 3.2%. Its shares remained down 1.4%. The previous frontrunner lagged in Friday’s recovery.
Intel NASDAQ:INTC will provide its next test for the sector next week, as the company releases second-quarter earnings after the close on July 23.
Risks are present in both directions. If cloud budgets remain subdued, the valuation adjustment may continue. However, robust spending or improved margins could trigger a swift recovery.
The tape currently indicates a sharp rebound, but broad leadership is lacking. Micron and Arm maintained their gains, while the benchmark failed to follow.
