The SOX index declined 20% from its highs as AMD dropped 7.8% and MARA and Riot fell 5%. Mining stocks correlated to chip weakness heading into a heavy tech earnings week.
The semiconductor sector just had its worst week in over a year, and it took a number of crypto-adjacent names down with it.
The Philadelphia SE Semiconductor Index, known as the SOX, fell roughly 4.3% on July 16 before extending losses to approximately 4.8% the following session. The index entered bear market territory, declining around 20% from its late June highs and erasing more than $1 trillion in semiconductor-related market value at the peak of the selloff.
AMD was among the hardest hit, shedding roughly 7.8%. Intel reported second-quarter 2026 revenue of $16.1 billion, a 25% increase year over year, partly from AI-related demand. The Nasdaq Composite dropped 1.47%, or 387 points, to close at 25,881.95, with the technology sector falling 1.8%.
Shares of MARA Holdings and Riot Platforms, two of the largest publicly traded Bitcoin mining companies, declined around 5% amid the broader pressure.
The timing matters. The selloff arrived just ahead of a critical earnings week featuring Alphabet, Tesla, Intel, and IBM. Investors were already questioning whether the massive capital expenditures flowing into AI infrastructure would translate into proportional revenue growth. The SOX index had roughly doubled in the first half of 2026, making it vulnerable to a re-rating on any sign that AI spending was outpacing returns.
Bitcoin mining companies have increasingly pitched themselves as AI and data-center plays, not just crypto operations. That dual identity means they trade with significant correlation to the broader chip and tech sector when those groups sell off. A portfolio long MARA, Riot, and spot Bitcoin ETFs is less diversified than it looks when all three track the Nasdaq during risk-off episodes.
Select chip manufacturers showed signs of stabilization later in the week. The earnings reports from the tech bellwethers in the coming days will set the tone for the next leg.
IBM carries an Alpha Score of 37 out of 100, a mixed reading, and AMD sits at 50. Both are in the technology sector.
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