Kulicke and Soffa, Applied Materials, AMD, Intel, and KLA Corporation Stocks Trade Down, What You Need To Know - Yahoo Finance

On July 29, 2026, a broad decline in the semiconductor sector was observed amid growing concerns over intensified competition from China and doubts about the sustainability of AI-driven demand. Stocks... Read original →

The recent semiconductor sector downturn stems from a confluence of AI demand deceleration and China's rapid technological advancement, triggering market recalibration. Progress in immersion DUV lithography by Chinese manufacturers undermines the dominance of U.S. equipment suppliers like Applied Materials and KLA, directly pressuring their market share. As China strengthens its chip manufacturing capabilities, especially in mid-tier processes, global overcapacity fears are intensifying. Investor sentiment has soured due to prolonged AI infrastructure spending uncertainty, negatively impacting high-growth stocks such as AMD and Intel. Supply chain disruptions, exacerbated by export controls, are increasing operational costs for firms. In response, leading players may pursue vertical integration or strategic R&D initiatives to maintain competitive edge. Over the next 12–24 months, the industry will enter a phase of structural reshaping, with capital increasingly allocated toward companies with strong technical moats and cost efficiency, while low-value segments face attrition.