Some Tech Stocks Show Warning Signs Despite Nasdaq Rally
Despite a strong rally in the tech-heavy Nasdaq Composite, several key stocks within the sector are showing signs of weakness. The Philadelphia Semiconductor Index (^SOX) remains down 14% from its June highs, with only three names—AMD (AMD), Nvidia (NVDA), and Taiwan Semiconductor Manufacturing Company (TSM)—closer to their peaks than the index itself. According to BTIG tech strategist Jonathan Krinsky, ten of the thirty companies in ^SOX are down more than 30% from their 52-week highs. GlobalFoundries (GFS), KLA (KLAC), and On Semiconductor (ON) have fallen over 40%. The average member is now down nearly a quarter. Krinsky warns of increasing dispersion within the S&P 500, with more stocks hitting 52-week lows than highs despite recent gains. This divergence raises concerns about market stability amid record Nasdaq levels driven by AI adoption and strong performance from semiconductor leaders.
Tickers: $AMD $GFS $META $NVDA $TSM