U.S. semiconductor index rebounds for first time in nine days ... Dip-buying amid oversold concerns

[Financial News] U.S. semiconductor stocks, which had fallen for eight straight trading days on concerns about declining demand, barely rebounded on the 19th (local time) as funds seeking to buy the dip flowed in. Memory-chip stocks led the rebound.
The Philadelphia Semiconductor Index (SOX), comprising 30 major semiconductor stocks listed in the United States, rose 1.6% from the previous trading day. The index had plunged about 15.7% over the previous eight trading days, marking its longest slump since October 2008, before finally rebounding on the 19th.
Recently, claims have circulated in U.S. investment markets that rising local Treasury yields are increasing the financial burden on the industry as it builds artificial intelligence (AI) data centers. Major semiconductor stocks plunged on concerns that sales would fall if data center construction came to a halt.
Michael James, an equity sales trader at U.S. investment bank Rosenblatt Securities, told local media that investor sentiment was in oversold territory. He warned that there had been no fundamental change in market conditions between late last week and the opening that day, and that it was too soon for the market to feel reassured, with major technology companies set to continue reporting earnings. SpaceX is due to report on the 20th, followed by Meta Platforms and Tesla on the 21st.
The rebound on the 19th was led by memory-chip and data-storage stocks. Micron Technology, Inc., the largest U.S. memory-chip maker, rose 2.97%. SK hynix American depositary receipts (ADRs) also gained 4.67%, closing at $142.87. Earlier, SK hynix ADRs fell 6.58% on the 16th.
Shares of WDC, a U.S. data-storage company, rose 6.09%, while those of NAND flash maker SanDisk Corporation gained about 5.5%.
NVIDIA Corporation, a leading AI chip stock, rose about 1.4%, while rival AMD gained 1.8%. Intel climbed 2.4% after JPMorgan raised its rating from “Underweight” to “Neutral.”
According to local business outlet Yahoo Finance, at least 90% of semiconductor-related stocks rose that day. About 80% of software-related stocks also gained, spreading the rebound across AI-related technology stocks. Palantir Technologies rose 4.36%, while Datadog gained 5.36%. Datadog also benefited from Bernstein raising its rating, citing increased AI-related demand.
Meanwhile, AI cloud company CoreWeave closed down 0.44% at $61.12, despite Goldman Sachs raising its rating. Concerns about its debt burden persisted after the stock plunged more than 25% last week.


[email protected] Park Jong-won Reporter