Hedge funds dumped chip stocks for a fourth straight week as SOX fell 4.3% on July 16

Hedge funds sold semiconductor stocks for a fourth consecutive week through early July 2026, per Reuters. The PHLX chip index then dropped 4.3% on July 16, adding to a 7.9% plunge on June 23 and a 4.65% fall on July 7. Index concentration in AI-adjacent names hit record levels as of July. The severity and frequency of single-day declines point to forced de-grossing of crowded positions rather than a repricing of earnings expectations.