Computer sales are faltering, short sellers are ramping up bets against semiconductor stocks and the US is tightening export restrictions. For investors in the chip sector, the outlook just keeps getting darker.
After rallying in July with the rest of tech, the shares of companies involved in the production of semiconductors are tumbling again amid a steady stream of warnings about slumping demand. The Philadelphia semiconductor index slumped almost 10% in August, about twice the loss for the tech-heavy Nasdaq 100 Index. And high flyers like Nvidia Corp. are back to flirting with lows reached two months ago.