Weekly Market Recap – August 24, 2026

Semiconductor stocks have faced another bout of volatility, down 20.3% since their peak on June 22, as investors weigh elevated expectations against questions around the sustainability and returns of the AI-related capex. However, sharp swings are nothing new for the sector. Since 1995, the PHLX Semiconductor Index has experienced an average intra-year decline of 29.8%, yet still finished the year higher in 20 of those 31 years. 2026 has been no exception: Despite falling as much as 28.6% from its highs, the index remains up a remarkable 66% year-to-date, even after three consecutive years of double-digit returns, including a peak-to trough decline of 35%.