AI-Benefiting Semiconductor Stocks Plunge 10% in a Day: Reasons for Trillions in Value Erosion

On July 2, shares of Vishay Intertechnology Inc. (VSH) closed at $45.91 on the New York Stock Exchange, down 10.36%. The company’s market capitalization fell by about $530 million—to roughly $5.69 billion—erasing approximately KRW 750 billion in a single day. Trading volume reached 5.8 million shares.

That same day, the Philadelphia Semiconductor Index plunged more than 7% amid fears of a slowdown in AI investment, triggering a broad sell-off across the semiconductor sector. As an analog–focused semiconductor stock, VSH registered an intraday drop of around 11%. Adding to the pressure, the company two days earlier had priced a public offering of 15 million common shares at $50 each, raising $750 million (about KRW 1 trillion). This move intensified concerns over share dilution and prompted further selling.

Vishay Intertechnology is a U.S. mid-cap semiconductor supplier of discrete semiconductors for automotive and industrial applications, as well as passive components such as resistors, inductors, and capacitors. In 2024, the company generated approximately $2.9 billion in revenue (about KRW 4 trillion). With VSH shares having surged over 200% year-to-date on expectations of rising AI-related power demand, the combination of a sizable equity raise and a sector-wide correction has highlighted increased stock volatility.