Semiconductor Stocks: A Boom Gone Bust? The recent rout in semiconductor stocks, led by SK Hynix's (SKHY) decision to increase capital expenditures by 50% this year to at least $31 billion, has been swift and merciless.
This move aims to meet the surging demand for memory chips driving the AI boom. However, the sector's woes extend beyond one company's struggles.
The Philadelphia Semiconductor Index (^SOX) has seen all its components trading below their 50 day moving averages since April 2025, a rare occurrence.