Semiconductor Stocks Fall Nearly 10% Last Week, But UBS, Barclays See AI Cycle Remaining Strong

According to reports covered by CNBC on July 19, semiconductor stocks declined nearly 10% last week—the worst week since April 2025—despite a broad market decline. However, UBS and Barclays maintained that the AI investment cycle remains robust.

UBS stated that computing demand driven by AI expansion continues to exceed supply capacity, and supply chain constraints are unlikely to ease in the near term. The bank projects that companies in the Philadelphia Semiconductor Index will see earnings increase 92% this year and grow an additional 40% next year. Barclays added that recent selling appears to be position adjustment rather than aggressive sector exit, as investor inquiries about semiconductor rebound timing have increased significantly.