“Chip stocks could plunge another 25% as ‘we are entering the worst semiconductor downturn in a decade,’ analyst says”
August 31, 2022
“[Citi Research analyst Christopher Danley] “We maintain our belief that every company/end market will correct and we expect the SOX index to hit new lows and fall another 25%,” Danley said.
Danley’s referring to the PHLX Semiconductor Index SOX, -0.28%, which is already on track to post its worst decline in 14 years. For the year, the index is down 32%, and if unchanged, would be the worst decline in the index since 2008 when it dropped 48% over the year.
Another 25% drop from its current level of about 2,700 would put the SOX at around 2,020, a low not seen since July 7, 2020, when it closed at 2,019. If the SOX closed the year at 2,020, it would also give the SOX its worst year ever with a 49% drop, worse than 2008’s 48% drop, currently the worst on record…”