SOXX Up 79% YTD Before 10% Sell-Off as Rising ASIC Costs Lock Out New Entrants
The AI semiconductor rally delivered 79% year-to-date gains for SOXX through June 5, 2026, then hit a ~10% single-day sell-off driven by geopolitical supply chain fractures and demand-concentration risk. Rising ASIC design costs are structurally widening the gap between capitalized incumbents and new entrants. Broadcom CEO Hock Tan's signal that Google may diversify chip suppliers marks the first credible threat to Nvidia's hyperscaler dominance.
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