Chip stocks decline as Nasdaq falls ahead of tech earnings, dragging crypto miners down with them

The semiconductor sector just had its worst week in over a year, and it took a surprising number of crypto-adjacent names down with it.

The Nasdaq Composite dropped 1.47%, or 387 points, to close at 25,881.95 on July 16, with the technology sector falling 1.8% and semiconductor stocks bearing the brunt of the pain. The Philadelphia SE Semiconductor Index, commonly known as the SOX, fell roughly 4.3% that day before extending losses to approximately 4.8% the following session.

A trillion dollars, gone

The SOX index officially entered bear market territory, having declined around 20% from its late June highs. At the peak of the selloff, more than $1 trillion in semiconductor-related market value had evaporated.

AMD was among the hardest hit individual names, shedding approximately 7.8% during the downturn. Intel reported second-quarter 2026 revenue of $16.1 billion, representing a 25% increase year over year, fueled in part by AI-related demand.

The timing of this selloff matters. It arrived just ahead of a critical earnings week featuring Alphabet, Tesla, Intel, and IBM. Investors were already nervous about whether the massive capital expenditures flowing into AI infrastructure would translate into proportional revenue growth.

Why crypto cares about chip stocks

Bitcoin mining companies have increasingly positioned themselves as AI and data-center plays, not just crypto operations. That dual identity means they trade with significant correlation to the broader chip and tech sector.

Shares of MARA Holdings and Riot Platforms, two of the largest publicly traded Bitcoin mining companies, declined around 5% amid the broader market pressure.

The AI spending question nobody wants to answer

The semiconductor sector had been the primary beneficiary of AI infrastructure spending, with the SOX index roughly doubling in the first half of 2026. That kind of run invites scrutiny, and scrutiny is exactly what arrived.

The earnings reports from Alphabet, Tesla, and IBM in the coming days will likely set the tone for the next leg of this trade. Select chip manufacturers were already showing signs of stabilization later in the week.

Investors holding positions in Bitcoin mining equities should be particularly attentive to the correlation dynamics at play. A portfolio that’s long MARA, Riot, and spot Bitcoin ETFs isn’t as diversified as it looks when all three move in lockstep with the Nasdaq during risk-off episodes.

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