July was a month of contrasts. The Nasdaq slipped into its second correction of 2026, triggered by a sharp sell-off in semiconductor stocks—memory chip manufacturers and chip equipment suppliers saw losses, in some cases in the double digits, and even strong quarterly results were no longer enough to prop up share prices. The DAX, on the other hand, hit new record highs during the same period, driven by software stocks and a rebound at Rheinmetall. At the same time, a significant amount of capital rotated out of AI and chip stocks and into Chinese tech and electric vehicle stocks, which staged a strong comeback after months of decline.
My portfolio benefited from this rotation and is back in the black:
📊 Monthly performance: +1.02%
📊 Portfolio value: ~€44,139
📊 Peak performance (Jan. 6, 2022): +43%
📊 YTD performance: ~+14.09%
Performance & Comparison 🚀
July demonstrated how differently the indices could perform depending on their composition. While the Nasdaq suffered from the chip sell-off, the DAX benefited from its lower concentration of semiconductor stocks and the Rheinmetall recovery. My portfolio tracked the DAX more closely than the Nasdaq and ended the month in positive territory.
Performance Comparison (July 1–July 31, 2026, end of day):
My portfolio: +1.02%
DAX: +2.57%
S&P 500: -1.25%
FTSE All-World: -1.47%
NASDAQ 100: -6.97%
Purchases, Sales & Allocation 💶
In July, I reduced my cash position. The Xtrackers II EUR Overnight Rate Swap ETF, which I had been using to park liquidity, was sold in three tranches: €301.00 on July 17, and €232.13 each on July 28 and July 29—totaling approximately €765. The freed-up funds were immediately allocated to three positions: BE Semiconductor Ind. $BESI (+3,07 %) I increased my position in two steps: €150.00 on July 17 and €230.00 on July 29. For Solaria $SLR (+2,97 %) , I added another €150.00 on July 17, and for Hermès $RMS (-2,5 %) on July 28. In doing so, I deliberately reallocated cash into stocks rather than injecting new capital.
Additionally, on July 30, I invested €454.36 in my own Wikifolio certificate $DE000LS9V052 (+1,58 %) —a private position separate from the rest of my portfolio.
Top Movers in July 🟢
The month clearly belonged to stocks that benefited from the rotation out of U.S. tech.
BYD posted the strongest gain at +27.08% (+€305.27). The stock received a double boost: capital flowed from AI and chip stocks into Chinese electric vehicle stocks, and BYD also reported $1211 (-1,62 %) reported a nearly 22% jump in sales for July and more than a doubling of overseas deliveries. Alibaba $BABA (-1,9 %) followed suit with a gain of +25.33% (+€149.06)—part of the same China-led rally that also swept up Tencent and Xiaomi. Snowflake $SNOW (+0,17 %) rose by +17.46% (+€155.91) and Cloudflare $NET (+1,16 %) by +15.62% (+344.80 €), the largest euro gain in the portfolio—both software stocks fared significantly better than hardware and chips in the rotation. Rheinmetall $RHM (+2,72 %) rebounded by +15.09% (+€186.59) from its 52-week low following the frigate shock in June, supported by full order books and rising defense budgets in Europe. Nubank $NU (+0,43 %) rounded out the list with a gain of +9.49% (+€97.49)—here, too, the rotation away from U.S. tech toward other regions played a role.
July’s Big Losers 🔴
On the other hand, the list consisted almost exclusively of stocks that were directly or indirectly hit by the chip sell-off.
Tempus AI $TEM (-1,95 %) suffered the biggest loss at -25.08% (-€55.74)—AI-related stocks came under particular pressure during the broad sell-off. IREN $IREN (+6,85 %) fell by -20.39% (-€179.15) and has remained weak since the price slump in early summer, still weighed down by the combination of Bitcoin weakness and skepticism regarding its transition to an AI cloud provider. BE Semiconductor Ind. $BESI (+3,07 %) fell by -18.77% (-€169.56), directly impacted by the global sell-off among chip equipment manufacturers. TSMC $TSM (+1,71 %) lost -15.04% (-€80.55)—despite a strong quarter, the stock was swept up in the general semiconductor correction. Hermès $RMS (-2,5 %) dropped -10.27% (-24.26 €), with luxury goods following the downward trend of weaker growth stocks. Solaria $SLR (+2,97 %) rounded out the list with a -9.50% (-€46.19) decline—solar and renewable energy stocks remain under pressure.
Conclusion 💡
July showed just how quickly capital flows can shift. While the chip sector underwent one of the sharpest corrections of the year, Chinese tech and electric vehicle stocks found their bottom. For my portfolio, this was a good example of why broad diversification across sectors and regions makes all the difference.
❓ Question for the Community
That was my month in numbers—how did the July chip sell-off affect you? Did you rotate into Chinese stocks, or are you holding onto your U.S. tech positions?
👇 Let us know in the comments!
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🗞️ Newsletter: codeandcapitalquant.beehiiv.com
📈 Wikifolio: https://www.wikifolio.com/de/de/w/wf0gquant6
