AI rotation is cooling our chip darlings, and tech earnings tomorrow are the sector's next big test

Evening brief: AI rotation is cooling our chip darlings, and tech earnings tomorrow are the sector's next big test

Published Jul 19, 2026, 8:02 PM EDT

AI Rotation Triggers Chip Sector Bear Market

Tech is bleeding as capital aggressively rotates out of semiconductor giants and into defensive sectors amid mounting valuation concerns.

Netflix Plunges 7.26% on Weak Q3 Guidance

Shares dropped 7.26% after third-quarter revenue guidance of $12.86 billion missed Wall Street estimates, completely overshadowing solid second-quarter earnings.

SpaceX Slips 5.43% Below Its IPO Price

The stock fell 5.43% to fresh lows below its recent IPO price following an unexpectedly aborted Starship rocket test flight.

ASTS Surges 5.07% On New Analyst Upgrade

Shares rallied 5.07% after B. Riley upgraded the satellite manufacturer to a Buy, citing a massively improved risk-reward profile.

Google Earnings To Test Tech Sector Pulse

Watch Alphabet and ServiceNow earnings on Wednesday to see if strong software results can finally reverse this vicious tech selloff.

Posture: Given the Fear index at 37 and capital rotating out of tech, our posture is Defensive. We prioritize staples, utilities, and healthcare.

Tickers in focus: SMH, NFLX, GOOGL

Upcoming earnings

• GOOGL — 2026-07-22, After Market Close
• NOW — 2026-07-22, After Market Close
• AMD — 2026-08-04, After Market Close
• DIS — 2026-08-04, After Market Close
• UBER — 2026-08-04, Before Market Open
• CELH — 2026-08-05, Before Market Open

The day's lineup changes

No lineup changes this day.