Movement Alert|Semiconductor Index ETF-HOLDRs Falls 3.1% in Regular Trading, Memory Chip Forward Oversupply Concerns Compound Institutional Selling Pressure

Market Focus07-15

On July 15, the Semiconductor Index ETF-HOLDRs declined 3.1% in regular trading, trading at 583.19 USD/share, with turnover of $23.4 billion.

On the news front, SK Hynix and Micron are expected to bring new capacity fully online by early 2028, raising concerns of notable pricing pressure in the memory chip segment. Meanwhile, AI cloud computing firm CoreWeave has been exploring the use of financial derivatives to hedge against potential declines in memory and storage chip prices, signaling growing industry awareness of forward supply risks. Additionally, hedge funds have net sold semiconductor and hardware technology positions for four consecutive weeks, with profit-taking sentiment in the AI sector remaining elevated and institutional capital rotating toward defensive and cyclical sectors.

Investment bank Stifel noted that the recent AI hardware selloff should be viewed as a rational valuation reset rather than a signal of weakening demand, with market expectations having run ahead of fundamentals.

The fund normally invests at least 80% of its total assets in securities that comprise the fund's benchmark index. The index includes common stocks and depositary receipts of U.S. exchange-listed companies in the semiconductor industry.

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