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Semiconductor index sinks into bear market as chip losses widen
The PHLX Semiconductor Index finished more than 20% below its June peak, while Apple hit a record intraday high and reclaimed the top market cap spot.
The PHLX Semiconductor Index fell into bear market territory on Friday, ending the session more than 20% below its June peak. Yahoo Finance notes the move followed a broader slump in global chip stocks, with investors taking roughly $3.3 trillion out of chip market value since June 22.
The decline has been tied to shifting expectations for the AI build-out, including what it will cost and which companies will benefit. Memory chipmakers, which have been among recent winners tied to the AI ramp, have been leading the declines, according to the report.
Despite the broader chip selloff, Apple stood apart during the same session. The company touched a record intraday high of $334.98 and, briefly, passed Nvidia to reclaim its position as the world’s most valuable company at about $4.9 trillion.
Yahoo Finance also points to a gap in spending and cash generation as part of the story. Apple spent $12.7 billion on capital expenditures in fiscal 2025 and generated $98.8 billion in free cash flow, while peers have committed hundreds of billions to AI infrastructure, leaving Apple less dependent on continued AI spending.
Apple’s fundamentals in the quarter also remained strong, with fiscal second-quarter revenue up 17% year over year to $111.2 billion and earnings per share up 22%. However, the report adds that investors are paying a premium, with Apple trading at roughly 40 times earnings even as revenue growth remains 17%.