Odaily Planet Daily report: Semiconductor stocks plunged sharply, continuing their recent downward trend. As the Democratic Party performed strongly in the U.S. midterm elections, investors began to question the outlook for the artificial intelligence trading theme. The Philadelphia Semiconductor Index fell 9.2%, on track for its largest single-day drop since June. For the week, it has declined approximately 12%; if this trend continues, it will record its worst weekly performance since April 2025, while also marking its longest consecutive weekly decline since April 2025.
This selling pressure also spread from chip manufacturers to other segments of the AI supply chain. Storage device makers Western Digital and Seagate Technology both fell more than 14%; so-called "new cloud" companies CoreWeave and Nebius Group also declined sharply. However, not all investors on Wall Street have lost confidence in chipmakers. For instance, Deutsche Bank noted that the semiconductor sector remains attractive compared to the software sector, with semiconductor stocks still offering notable investment value relative to the software industry.