The Kobeissi Letter, a markets commentary publication, reported on Monday, October 19, 2026, via X that US semiconductor stocks are undergoing substantial volatility. The publication stated, “US semiconductor stocks are experiencing massive volatility: The Semiconductor Index, SOX, to S&P 500 ratio is down to 1.45 points, its lowest since April 2026. This ratio has declined -0.46 points, or -24%, from its mid-June peak. Over this period, SOX has fallen -24%, while the S&P 500 has gained +2%.” The report also highlighted the Semiconductor Index's recent performance, noting that “SOX has also declined for 8 consecutive trading sessions, its longest streak since the 2008 Financial Crisis.”
This reported volatility in semiconductor stocks occurs as the broader technology sector faces scrutiny regarding artificial intelligence spending returns. Gokhshtein Media recently covered earnings from companies like Tesla and Meta, which are significant players in AI. Furthermore, TSMC stock has been noted as undervalued at 30 times earnings despite a 69% profit surge, indicating potential sector-specific dynamics influencing investor perception. The S&P 500 gained +0.5% today, while the Nasdaq rose +1.2%.
The Kobeissi Letter's analysis suggests that while the ratio of SOX to S&P 500 is still up +142% since its 2022 bear market low of 0.60 points, the recent decline and prolonged losing streak indicate a period of heightened investor caution or re-evaluation within the semiconductor industry. The publication noted that the relative decline is comparable to the one observed following the 2000 Dot-Com Bubble burst, signaling a potentially significant shift in market dynamics for these stocks.
