Nasdaq Hits Records but Chip Stocks Flash Bearish Warning Signs

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Summary · why it matters

The Nasdaq Composite surged to back-to-back record highs this week, but beneath the surface the Philadelphia Semiconductor Index remains 14% below its June highs, with only AMD, Nvidia, and Taiwan Semiconductor trading closer to their own highs than the index itself, according to BTIG tech strategist Jonathan Krinsky. Ten of the 30 names in the SOX are still off more than 30% from their 52-week highs, with GlobalFoundries, KLA, and On Semiconductor each down more than 40%, while the average SOX member is down 26%. Krinsky warned that a similar situation appeared in 2000 after the initial market crack, when many semiconductor names went on to make new highs while the SOX itself did not, and he noted five straight days of more 52-week lows than highs in the S&P 500 even as the index rallied back near all-time highs, with the SPX up 1.2% over the last month while 9 of 11 sectors are negative. The broader rally has been ignited by massive consumer and enterprise adoption of Meta's new autonomous AI agent, Muse, which validated heavy capital expenditures and sparked a rerating across the AI ecosystem, with AMD pushed past a historic $1 trillion market valuation. Krinsky said it is hard to fight tech momentum right now but the extreme dispersion and increasing number of stats that rhyme with 2000 likely mean more near-term chop, and he remains cautious over the medium term.

Impact on assets 9

Semiconductors▲ · 5 stocks
Artificial Intelligence▲ · 2 stocks
Advanced Micro Devices Inc
AMD
▲ PositiveDemandrelevance

Massive consumer and enterprise adoption of Meta's Muse AI agent sparked an AI ecosystem rerating that pushed AMD past a historic $1 trillion market valuation.

Spatial Computing / AR/VR▲ · 1 stocks
Meta Platforms Inc.
META
▲ PositiveDemandrelevance

The broader rally was ignited by massive consumer and enterprise adoption of Meta's new autonomous AI agent, Muse.

Digital Finance & Tokenization▲ · 1 stocks
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