The semiconductor sector was suffering another broad selloff, and was headed for a fourth straight loss after a stellar 2023. The PHLX Semiconductor Index sank 1.8%, with 29 of 30 components losing ground, The biggest decliners in the sector were shares of Wolfspeed Inc. (WOLF), which slid 5.6%, and On Semiconductor Corp. $(ON)$, which lost 3.6%. The most-active loser was Advanced Micro Devices Inc.'s stock $(AMD)$, which was down 2.3%. And shares of sector leader Nvidia Corp. $(NVDA)$, which is the fifth largest U.S. company with a market capitalization of $1.18 trillion, gave up 0.8%. The lone gainer was Micron Technology Inc.'s stock $(MU)$, which ticked up 0.2%. BofA Securities analyst Vivek Arya said he's bullish on the SOX for 2024, even after it already soared 65% in 2023 to have its fourth-best yearly performance in the past three decades. While the sector is likely to see higher volatility in 2024 as concerns over rising interest rates, geopolitical tensions between U.S. and China and supply-demand challenges persist, secular tailwinds include continued investment in artificial-intelligence (AI) infrastructure, growing chip-design complexity, continued proliferation of automotive chip content and a government focus on public investment. The SOX has lost 6.2% amid a four-day losing streak, which started after it closed at a record high of 4,214..59 on Dec. 27.
-Tomi Kilgore
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(END) Dow Jones Newswires
January 03, 2024 11:11 ET (16:11 GMT)
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