SOXX is down 25% from its highs. Leveraged semiconductor ETFs have fallen 62% over the same span. The decline comes as chipmakers report record results and sign new AI supply deals.
KLA posted record quarterly results this cycle. SK hynix signed new supply agreements to feed AI accelerator demand. GlobalFoundries struck a partnership with the U.S. Department of Commerce under the CHIPS program.3
AMD and Cerebras announced a new AI accelerator collaboration.1 Nvidia and SK hynix expanded their own supply arrangement. Chipmakers have roadmapped new AI chip generations through 2028, signaling multi-year demand commitments that contrast with the equity sell-off.
Skyworks and Qorvo advanced their merger, naming integration leadership this week. "Today's announcement reflects the strong partnership that has shaped our integration planning efforts from the very beginning," said Bob Bruggeworth.2 The deal consolidates two RF chipmakers as demand for connected devices continues.
Kalray and Bull, a subsidiary of Eviden, signed an agreement to develop next-generation high-speed networking for AI and high-performance computing. "This agreement with Bull confirms once again the relevance of our technological vision," said Éric Baissus.4 The companies aim to build infrastructure for AI and HPC workloads.
Packaging and testing demand tied to AI chip production continues to expand across the supply chain.5 None of this activity has stopped the equity slide.
The divergence marks a classic late-cycle correction: fundamentals hold while sentiment deteriorates. Micron shares have bounced off recent lows, a move some traders read as an early stabilization signal for the broader chip complex.
Until equity sentiment catches up with order books, the gap between AI chip deal flow and semiconductor stock prices remains the defining story of this correction.
