Did semiconductor stocks enter bear market territory?

Yes, some semiconductor stocks briefly entered bear market territory last week after falling 20% or more from highs, but they have recovered today.

Which other companies rose alongside Seagate and Western Digital?

Gains also included FormFactor, Amkor Technology, Teradyne, and Taiwan Semiconductor Manufacturing (TSM).

Seagate, Western Digital Lead Semiconductor Stock Surge

Shares of several semiconductor companies, including Seagate and Western Digital, surged in morning trading as dip buyers returned to take advantage of attractive valuations following last week's steep selloff.

July 21, 2026

2 min read

Source: StockStory

Shares of several semiconductor companies, including Seagate Technology PLC (STX) and Western Digital Corporation (WDC), surged sharply in morning trading today. The rally comes as dip buyers returned to capitalize on attractive valuations after a steep selloff last week that briefly pushed some semiconductor giants into bear market territory.

Reasons for the Rally

The current uptick is primarily driven by dip buying, as investors took advantage of the significant price declines to purchase shares at lower valuations. Additionally, continued optimism surrounding the long-term artificial intelligence (AI) investment cycle is supporting positive sentiment toward the sector.

Context

The recovery follows the worst weekly drop for semiconductor stocks in over a year, with some entering bear market territory (a decline of 20% or more from recent highs). Despite recent market jitters about elevated valuations, investors remain optimistic about AI's long-term potential.

Similar Moves in the Sector

Gains were not limited to Seagate and Western Digital; FormFactor, Amkor Technology, and Teradyne also saw significant increases, indicating a broad recovery in the semiconductor space. Shares of Taiwan Semiconductor Manufacturing (TSM) also improved, reflecting the sector's overall strength.

Frequently Asked Questions

The surge is driven by dip buyers returning to capitalize on lower valuations after last week's steep selloff, along with continued optimism about the AI investment cycle.

Found this useful? Share it

This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.