Chip ETF’s hot year gets a cold July jolt
The iShares Semiconductor ETF is still up sharply in 2026, but MarketWatch reported a July slide that has hit most of its holdings.
By Frankie Delgado · News Reporter
3 min read
The chip trade is giving investors a rough reminder that even an index fund can bite back fast.
MarketWatch columnist Philip van Doorn reported that the iShares Semiconductor ETF, which follows the 30-stock PHLX Semiconductor Index, was still up 73% for 2026 through Friday. The catch: it had dropped 19% during July, erasing a chunk of the year’s gains in less than three weeks.
According to MarketWatch, Nvidia was the only stock in the ETF that was positive for July through Friday’s close, rising 1.4%. Fourteen of the fund’s 30 holdings were down at least 20% for the month.
Big winners, sharp pullbacks
LSEG data cited by MarketWatch showed the heaviest July declines inside the semiconductor ETF included Astera Labs, down 37.1%, Marvell Technology, down 36.7%, Teradyne, down 33.4%, and Intel, down 31.9%.
Other steep drops included KLA, Lam Research, Applied Materials, Micron Technology, Arm Holdings and United Microelectronics, all down more than 20% for July through Friday, according to the same LSEG figures.
The valuation picture was mixed. LSEG calculated a weighted forward price-to-earnings ratio of 22.8 for the iShares Semiconductor ETF, compared with 20.3 for the SPDR S&P 500 ETF Trust and 21.9 for the State Street Technology Select Sector SPDR ETF.
Micron stood out in MarketWatch’s review. Its stock had nearly tripled in 2026, making it the strongest year-to-date performer among the 14 semiconductor ETF names listed, while its forward P/E was 5.7. MarketWatch said that suggested analysts’ rolling earnings estimates for Micron had climbed faster than the share price, based on LSEG data.
Memory-chip names stay wild
The same report looked beyond the ETF at memory and storage-related stocks. Sandisk was down 40.4% in July but remained the top performer in the S&P 500 for 2026, with a 471% gain, according to LSEG data cited by MarketWatch.
SK Hynix, Micron, Western Digital and Seagate Technology also showed large 2026 advances and steep July pullbacks. MarketWatch reported that low P/E ratios for Sandisk, SK Hynix and Micron reflected rising earnings estimates this year, along with investor caution about the sector’s history of revenue cycles.
Tech pain spread beyond chips
IBM also had a rough week. MarketWatch reported that the company released second-quarter results a week earlier than expected on Tuesday, and the stock fell 23% that day.
IBM Chief Executive Arvind Krishna told shareholders the company had a revenue shortfall tied to the rollout of its z17 mainframe computer and changes in customer purchasing behavior. In the shareholder letter, he said large deals failed to close on the company’s expected schedule, accounting for most of the shortfall.
SpaceX was another focus. Citing FactSet data, MarketWatch said the stock closed Friday at $123.99, 8% below its $135 initial public offering price. The company went public on June 12, and the shares reached an intraday high of $225.64 on June 16, according to FactSet.
MarketWatch also pointed readers to coverage on AI-related borrowing, Treasury yields, homebuilders cutting prices in some U.S. metro areas, end-of-life financial planning, AI-powered robo advisers and a Moneyist column about a homeowner who improved an insurance-claim outcome through record keeping and a second attempt.
This story draws on original reporting from MarketWatch.