Semiconductor Sector Tumbles 8% This Week as UBS and Barclays Maintain Bullish Stance

According to CNBC on July 19, the semiconductor sector experienced a sharp decline this week. The Philadelphia Semiconductor Index fell 8% weekly and 17% monthly, potentially ending three consecutive months of gains. The Roundhill Storage ETF (DRAM) dropped 17% on the week, while VanEck Semiconductor ETF fell 7%.

UBS projects component stocks within the index will see earnings grow 92% this year and an additional 40% in 2027, citing sustained demand for computing power exceeding available supply. Barclays' trading division noted no panic indicators in semiconductor trades, characterizing recent selling as passive position reductions rather than broad-based investor exits. WSTS data shows the global semiconductor market is forecast to expand 90% in 2026, with sales growth accelerating to 119% in May from 106% in April.