The semiconductor index tracks US-listed companies involved in chip design, manufacturing and sales. It is weighted by market value with limits on concentration, offering a gauge of semiconductor industry trends.
History and development
The Philadelphia Semiconductor Index began on December 1, 1993, with a base value of 200. It groups businesses involved in semiconductor design, production and related equipment. A two-for-one index split followed in 1995. Such index-level adjustments are distinct from changes in the underlying companies' businesses.
References: Nasdaq: SOX overview
Comparing charts on this board
The semiconductor index narrows the comparison to chip-related businesses. If it outperforms a rising Nasdaq-100, relative strength in that group stands out. One influential company can still account for part of the move, so the index alone does not imply identical demand across every semiconductor business or product.
Place a designer such as NVIDIA beside manufacturing and equipment companies to compare different parts of the industry. When adding Japanese semiconductor-related stocks, remember that trading hours differ. A US move may be followed by a Japanese response on the next business day; side-by-side chart shapes are not necessarily simultaneous reactions.
Related charts: NASDAQ 100 · NVIDIA · TSMC · Applied Materials · Tokyo Electron
Official references: PHLX Semiconductor