WS #16181
The AI infrastructure trade is undergoing a violent correction, with the SOXX index plunging 12% and wiping $1.64 trillion from market cap. This selloff is being driven by reports of financing pushback on hyperscaler data-center projects and a rotation out of high-beta tech into value and small caps. The market is questioning the sustainability of current AI capex levels as capital markets show signs of fatigue, leading to a broad unwinding of AI-linked positions across Nvidia, AMD, and Micron.
AI Chip Selloff and Capex Concerns
The AI infrastructure trade is undergoing a violent correction, with the SOXX index plunging 12% and wiping $1.64 trillion from market cap. This selloff is being driven by reports of financing pushback on hyperscaler data-center projects and a rotation out of high-beta tech into value and small caps. The market is questioning the sustainability of current AI capex levels as capital markets show signs of fatigue, leading to a broad unwinding of AI-linked positions across Nvidia, AMD, and Micron.