Kioxia's Stock Price Halves in a Month Amid Ongoing Pressure on Global Semiconductor Sector

07/18 06:10

On July 18, the global semiconductor sector continued to weaken this week, with Japan's semiconductor leader Kioxia experiencing a single-day drop of 16%, accumulating a nearly 50% decline from its peak a month ago. Meanwhile, stocks in Japan's chip supply chain, including Ibiden, Tokyo Electron, and Sumitomo Metal Mining, generally fell between 8% and 10%. In the U.S. market, the Philadelphia Semiconductor Index (SOX) has retreated about 21% from its historical high on June 22, officially entering a technical bear market. Despite TSMC's earlier announcement of better-than-expected earnings and an upward revision of its performance guidance, its stock still dropped 7%, indicating continued pressure on market sentiment. Reports suggest that several institutions believe this round of adjustments in the semiconductor sector is more due to high crowded positions and profit-taking rather than a deterioration in the industry's fundamentals. Additionally, Citigroup data shows that this week, semiconductor-related ETFs in South Korea and Taiwan saw net inflows of approximately $6.4 billion and $2.8 billion, respectively, while the South Korean stock market recorded about $500 million in foreign net inflows, indicating that some funds have begun to position themselves at lower prices.
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