Yahoo Finance
The reaction to SK Hynix's (SKHY) capex guidance on Wednesday only highlights the stunning summer rout in semiconductor stocks.
Shares of the South Korean chip play tanked as the company said it expects its capital expenditures to surge 50% this year to at least $31 billion.
The company is attempting to meet the strong demand for its memory chips, which are playing a key role in the AI boom.
Quick insight:The SK Hynix rout will unlikely do anything to reawaken animal spirits in the chips space.
All the stocks of the closely watched Philadelphia Semiconductor Index (^SOX) are now trading below their 50-day moving averages, the first such occurrence since April 2025, according to FactSet data.
The SOX has declined 18.9% so far in July, and is on track for its largest monthly loss since 2008.
"Chip stocks are becoming oversold," strategists at The Kobeissi Letter wrote in a note.
AlphaSpace intel:One of 2026's hottest stocks is going up in flames.
Sandisk (SNDK) shares plunged 17% on Tuesday and are now down 30% in five days.
The stock has crashed about 55% from its record high in late June.
The stock looks to be on a collision course to test its 200-day moving average around $832, per Yahoo Finance AlphaSpace data.
That would be a roughly 24% drop from current trading levels.
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