WS #16324
The semiconductor sector is undergoing a significant correction, with AMD and Intel dropping 5% and equipment maker Lam Research falling 10% on weak guidance. This selloff is driven by investor anxiety over the sustainability of massive AI capital expenditures, particularly highlighted by Meta's 6% decline despite an earnings beat. The market is currently prioritizing margin protection over growth, leading to a broad rotation out of high-multiple tech names.
Semiconductor and AI Capex Selloff
The semiconductor sector is undergoing a significant correction, with AMD and Intel dropping 5% and equipment maker Lam Research falling 10% on weak guidance. This selloff is driven by investor anxiety over the sustainability of massive AI capital expenditures, particularly highlighted by Meta's 6% decline despite an earnings beat. The market is currently prioritizing margin protection over growth, leading to a broad rotation out of high-multiple tech names.