Global chip stocks declined roughly 13% in July, erasing a staggering amount of wealth accumulated during one of the most euphoric rallies in the industrys history. The Philadelphia Semiconductor Index fell 18% by mid-July, while the VanEck Semiconductor ETF dropped 13% over just ten trading sessions. Aggregate market cap destruction exceeded $1 trillion, with some estimates placing the loss between $1 trillion and $3.3 trillion depending on the measurement window. SK Hynix suffered the worst single-session decline at 15% on July 13. Most analysts describe this as a mid-cycle reset rather than the end of the AI investment cycle.
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