- Lam Research CEO Tim Archer said that going into 2027 the company sees supply chain constraints for certain components continuing to limit chip makers.
- The Direxion Daily Semiconductor Bull 3X Shares (SOXL) plunged more than 20% at the Oct 22 close, the iShares Semiconductor ETF (SOXX) fell nearly 7%, and VanEck Semiconductor ETF (SMH) fell 5.99%.
- Nvidia fell more than 4%, Micron Technology tumbled more than 6%, and Advanced Micro Devices fell by over 8% at close.
- SMH closed at 523.35, below its 50-day average of 576.33 and above its 200-day average of 514.73, with a 14-day RSI of 32 and volume at 2.0 times its 20-day average.
- SignalHerald's two-year data shows SMH was higher five sessions later in 10 of 12 prior sessions with drops of 4.5% or more, with a median five-session gain of 2.1%.
- The selloff reversed early-week gains in semiconductor stocks that followed a sharp selloff the prior week.
Quotes
“supply chain constraints for certain components continuing to limit chip makers”
“Investors have rotated from Mag Seven to tech more broadly as the AI ecosystem has produced more durable earnings than initially perceived”