{"id":44978,"date":"2025-11-06T11:34:59","date_gmt":"2025-11-06T11:34:59","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/11\/06\/soxx-and-smh-etfs-crashed-amid-ai-bubble-jitters-will-they-rebound\/"},"modified":"2025-11-06T11:34:59","modified_gmt":"2025-11-06T11:34:59","slug":"soxx-and-smh-etfs-crashed-amid-ai-bubble-jitters-will-they-rebound","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/11\/06\/soxx-and-smh-etfs-crashed-amid-ai-bubble-jitters-will-they-rebound\/","title":{"rendered":"SOXX and SMH ETFs crashed amid AI bubble jitters: will they rebound?"},"content":{"rendered":"
<\/div>\n

The iShares Semiconductor ETF (SOXX) and the VanEck Semiconductor ETF (SMH) suffered a harsh reversal this week as top companies in the index shed over $500 billion in value following key earnings. <\/p>\n

SMH dropped to $352, down from the all-time high of $372, while SOXX fell to $296 from a high of $313. This article explores why these semiconductor ETFs are falling and whether they will rebound soon.<\/p>\n

SOXX vs SMH ETF stocks | Source: TradingView<\/figcaption><\/figure>\n

SOXX and SMH ETFs dropped amid warnings of an AI bubble<\/h2>\n

The main reason why the SOXX and SMH ETFs crashed is that there are lingering concerns about an AI bubble<\/a> in the United States and other countries. <\/p>\n

Michael Burry, a top investor known for predicting the housing crisis in 2009 has gone against the grain and shorted high-flying companies like Palantir Technologies and Nvidia. <\/p>\n

He cited their significantly high valuations<\/a> and the ongoing irrational exuberance. Still, while Burry is generally a respected figure in the investment industry, some of his recent calls have not worked out well. <\/p>\n

The main concern of the AI bubble is that companies are investing billions of dolllars and it is unclear how they will recoup their investments.<\/p>\n

One of the top concerns is OpenAI, the biggest player in the industry. OpenAI has inked deals with most companies in the chip industry. This week, it inked a $38 billion deal with Amazon.<\/p>\n

It has entered a $100 billion deal with AMD, and others by companies like Microsoft, Broadcom, and CoreWeave. In total, its deal-making is now estimated to be worth over $1.4 trillion. <\/p>\n

In a statement this week, Sam Altman revealed that the company\u2019s revenue will be over $13 billion this year, making it the biggest player in the sector. <\/p>\n

Analysts are concerned about monetization in the industry, with a Bain report estimating a $800 billion revenue shortfall by 2030. <\/p>\n

Palantir, AMD, and Qualcomm earnings<\/h2>\n

The SOXX and SMH ETFs have pulled back this week after the latest results by Palantir and AMD. Palantir<\/a>, <\/strong>a top player in the AI industry published strong results and boosted its forward guidance. <\/p>\n

Nonetheless, the stock plunged by 10% as the guidance was lower than what analysts were expecting. Still, its results demonstrated that its business was still growing and attracting more commercial clients. <\/p>\n

AMD, another top player in the SOXX and SMH ETFs, also plunged by over 4% in the extended hours. This retreat, which we predicted here<\/a>, <\/strong>came as the company\u2019s revenue jumped by 36% to $9.2 billion and its net income rose by 61%.<\/p>\n

The next key catalyst for these semiconductor ETFs is the upcoming Qualcomm earnings. This will be a closely-watched report as it comes after it unveiled its AI chip to rival Nvidia.<\/p>\n

Will these semiconductor ETFs rebound?<\/h2>\n

Concerns that we are in an AI bubble have been going on in the past few months. Also, there are concerns about the valuations of these funds. SOXX has a PE ratio of 36.6, while the SMH ETF has a multiple of 40. These numbers are much higher than the S&P 500\u2019s 23.<\/p>\n

Therefore, it is normal to predict that a correction will happen at some point when these companies stop growing. This correction will likely happen in 2026 when big customers like Microsoft and Meta Platforms will slow their investments.<\/p>\n

In the near term, however, this spending will continue, which will push these ETFs higher. A key catalyst for their performance will be the upcoming Nvidia earning on November 19. Hints that its business is slowing will have a negative impact on the ETFs.<\/p>\n

The post SOXX and SMH ETFs crashed amid AI bubble jitters: will they rebound?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The iShares Semiconductor ETF (SOXX) and the VanEck Semiconductor ETF (SMH) suffered a harsh reversal this week as top companies in the index shed over $500 billion in value following key earnings.  SMH dropped to $352, down from the all-time high of $372, while SOXX fell to $296 from a high of $313. This article <\/p>\n","protected":false},"author":1,"featured_media":44979,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-44978","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=44978"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44978\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/44979"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=44978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=44978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=44978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}