US Semiconductor Stocks Face Longest Losing Streak Since 2006
U.S. semiconductor stocks suffered an 8-day losing streak, pushing the Philadelphia Semiconductor Index down over 12% in just 7 days and granting short sellers $32.0 billion in paper profits. This market correction signals growing investor anxiety over high stock valuations, rising interest rates, and the sustainability of massive AI infrastructure spending. Components like Coherent, Astera Labs, MACOM, and Credo Technology dropped over 20%, while short sellers betting against AI cloud provider CoreWeave also reaped over $1 billion in paper profits.
## BACKGROUND
The Philadelphia Semiconductor Index is a benchmark measuring the performance of semiconductor companies. Short selling is a trading strategy where an investor borrows shares and sells them, hoping to buy them back later at a lower price to return to the lender, thus profiting from a price decline.