Key facts
- The Philadelphia SE Semiconductor index lost $1.64 trillion in value over the past six sessions.
- The index has experienced significant volatility, with intraday swings of at least 2% on many days.
- Some investors believe the selloff has created a short-term buying opportunity, but long-term prospects are uncertain.
US semiconductor stocks were poised to lose $2 trillion in market value on Thursday amid a steep selloff since last week. The Philadelphia SE Semiconductor index was last down 3.3%, adding to a $1.64 trillion wipeout over the past six sessions. Rising bets of an interest-rate hike and concerns over the cost of the AI buildout are driving the selloff. The index experienced significant volatility in July, with daily swings of at least 4% and intraday swings of at least 2%. Some analysts believe the selloff may present a short-term buying opportunity, but question the long-term sustainability of chip stock growth.