As of October 13, 2026, the iShares Semiconductor ETF (SOXX) recorded five consecutive days of declines, marking its longest losing streak since May 2025. This downturn reflects growing investor skepticism regarding the profitability of AI infrastructure investments.
The market reaction was triggered on October 8 by reports that OpenAI's revenue run rate is approximately $50 billion, falling short of the anticipated $70 billion. This discrepancy led to a 3.4% single-day drop in the PHLX Semiconductor Index (SOX).
Currently, 22 of the 30 stocks in the SOX index are trading more than 20% below their peak values from May or June 2026. Shares of SK Hynix and Cerebras also experienced declines of approximately 20% over recent sessions.
Broadcom CEO Hock Tan contributed to market unease by comparing AI sector speculation to casino gambling. Additionally, competitive pressure from the Chinese memory chip manufacturer CXMT has further impacted investor confidence in the sector.
Despite the recent correction, the SOX index remains up more than 70% for the year. Goldman Sachs projects that capital expenditure by US hyperscalers will reach approximately $800 billion in 2026 and $1.1 trillion in 2027.
