The iShares Semiconductor ETF (NASDAQ:SOXX) has slumped into a bear market, falling from a record high of $656 in June to $471, its lowest level since July. SOXX, which tracks the biggest semiconductor companies, has dropped as most of its constituent firms tumble.
Nvidia (NASDAQ:NVDA) has fallen by 16% from its peak, while Micron (NASDAQ:MU), Broadcom (NASDAQ:AVGO), and Intel (NASDAQ:INTC) have all fallen into a technical bear market. These stocks have dropped as investors remain concerned about the AI industry continuing to rise.
Investors are concerned that this could be one of the biggest bubbles in history. These concerns have risen in the past few weeks.
OpenAI, the AI pioneer, is said to have raised just $11 billion, much lower than the $30 billion it was targeting. 25 trillion.
25 Trillion Other AI companies are also struggling. For example, top neocloud companies like CoreWeave, Nebius, Riot Platforms, and IREN have all plunged, with Elon Musk warning that over 200 neocloud companies will go under as funding dries.
These fears explain why investors have started selling their SOXX shares. 54 billion in outflows on Friday, bringing its assets under management to $48 billion.
SOXX ETF Has Formed Bearish Technicals SOXX chart | Source: TradingView The weekly chart shows that the SOXX ETF has been in a strong rally in the past few months. 6% Fibonacci Retracement level.
Most notably, the Supertrend indicator has turned red for the first time in over a year.
