The semiconductor sector plunged this week, but UBS and Barclays remain bullish.

BlockBeats News, July 19, according to CNBC, the semiconductor sector saw a significant decline this week. The Philadelphia Semiconductor Index fell 8% this week and 17% for the month, potentially ending a three-month winning streak; Roundhill Storage ETF (DRAM) dropped 17% for the week, and VanEck Semiconductor ETF fell 7%.

UBS expects the earnings of the Philadelphia Semiconductor Index components to grow 92% this year and another 40% in 2027. UBS Global Head of Equities Ulrike Hoffmann-Burchardi stated that computing power demand remains higher than the available supply, and supply chain capacity constraints are unlikely to ease significantly in the short term, so they remain optimistic about the semiconductor industry.

Barclays trading division noted that there are currently no signs of panic in semiconductor trading, and the recent selling appears to be more of a passive reduction rather than a broad investor exit. WSTS data shows the global semiconductor market is expected to grow 90% in 2026 and another 27% in 2027; after a year-on-year increase of 106% in April, industry sales growth accelerated to 119% in May.

However, Deutsche Bank strategist Maximilian Uleer expressed concerns about the industry's outlook and its high weighting in the market. Wells Fargo's Ohsung Kwon pointed out that semiconductor market sentiment has experienced one of the sharpest declines in history over the past four weeks.