Big investors keep selling chip stocks as prices fall again

Hedge funds sold chip stocks for a fourth straight week through early July 2026, per Reuters. A key chip-stock index fell 4.3% on July 16, after losing 7.9% on June 23 and 4.65% on July 7. So many investors had piled into AI-related chips that these forced sell-offs look like a rush to the exits, not a change in company profits.