U.S. Semiconductor Stocks Drop 4.40%-9.84% on Friday; Multiple Factors Drive Selloff

According to MarketWatch, U.S. semiconductor stocks fell sharply on Friday (July 24), with the Semiconductor ETF SOXX declining 4.40% and major chip stocks posting steeper losses: Micron Technology (MU) dropped 6.99%, Intel (INTC) fell 7.89%, Coherent (COHR) slumped 9.84%, and Lumentum (LITE) lost 8.47%.

Daniel O'Regan, managing director at Mizuho Securities, noted that the selloff was driven by multiple overlapping factors rather than a single catalyst. Key concerns included Intel's strong earnings failing to lift sentiment, anticipation of China's Changxin Memory's IPO on Monday, investor concerns about mega-cap cloud providers' rising capital expenditures (forecast to reach $785 billion in 2026 and approach $1 trillion by 2027), and weakness in South Korea's semiconductor sector.