Chip stocks wiped out approximately $2 trillion over eight trading days, setting the longest consecutive decline record since 2008.

On October 20, according to BeInCrypto, U.S. chip stocks shed approximately $2 trillion in market value over eight trading days, marking the longest consecutive losing streak since 2008. The Philadelphia Semiconductor Index dropped over 11% last week before posting a rebound on Monday. The 10-year U.S. Treasury yield stood at 5.10% at Monday's open (per Schwab data), while higher-than-expected inflation readings have heightened the likelihood of further Fed rate hikes. Minutes from the Fed's September meeting indicated that most policymakers believed it appropriate to raise rates once more in 2026.

According to a discussion on the CNBC Investment Committee, members exhibited clear divergence regarding the sell-off. One side argues that elevated yields are weighing on debt-financed "neocloud" compute leasing companies, noting that a drop of 0.5 to 0.75 percentage points in yields would alleviate pressure. Conversely, others believe hedge funds trimming chip stock positions reflects a healthy correction, given that November and December are seasonally supportive for equities. When it comes to peaking AI expenditure, members' timelines vary from one to four years.