Hedge funds dump chip stocks for a fourth week as SOX slides 4.3%

Hedge funds sold semiconductor stocks for a fourth straight week through early July 2026, per Reuters. The PHLX chip index then fell 4.3% on July 16, after drops of 7.9% on June 23 and 4.65% on July 7. Index concentration in AI-adjacent names hit records. The pattern suggests forced unwinding of crowded positions, not a rethink of earnings.