The SOXX semiconductor index has dropped roughly 25% from its highs, with leveraged semiconductor ETFs down about 62%, even as chipmakers report some of their strongest results in years.
Amkor Technology posted better-than-expected quarterly results, defying the selloff hitting the broader sector.1 KLA also reported record quarterly performance. The disconnect: investors are repricing risk in AI-infrastructure stocks while the underlying businesses keep beating expectations.
Government and corporate money is still flowing into the buildout. GlobalFoundries secured a $300 million CHIPS Act R&D award along with a roughly 1% U.S. government equity stake, reinforcing state-level commitment to domestic chip manufacturing.2 SK hynix has locked in long-term AI-memory supply agreements, securing demand visibility years out even as its stock trades down with the sector.
Fundamentals across the chip supply chain remain intact. Advanced Micro Devices continues to point to strong momentum in its data-center and AI accelerator businesses even as its shares move with the broader semiconductor drawdown.3
Consolidation is accelerating alongside the selloff. Skyworks Solutions and Qorvo finalized combined leadership for their pending merger, with Skyworks CEO Bob Bruggeworth citing integration planning that has been underway "from the very beginning."4 Nvidia poured $5 billion into Safe Superintelligence, betting on the next phase of AI research infrastructure rather than pulling back. Apple began a CEO transition to John Ternus, a leadership change unfolding independent of the chip-stock rout.
Smaller players are also doubling down. French chipmaker Kalray and Bull agreed to develop next-generation high-speed networking for AI and high-performance computing, with Kalray CEO Éric Baissus calling the partnership confirmation of the company's technological vision.5 Chinese chipmakers are advancing their own AI accelerator roadmaps, including the Zhenwu V900 and J900, signaling that global competition for AI compute is intensifying regardless of Western equity sentiment.
The result is a market where stock prices and corporate behavior are telling different stories. Companies, governments and competitors are still committing capital to AI infrastructure at scale, even as public markets reprice the sector's near-term risk.
