WS #16325
The semiconductor sector is experiencing a coordinated selloff, triggered by Lam Research's 10% drop on weak guidance. The weakness has spread to equipment and memory names, with Applied Materials, Marvell, Western Digital, Intel, and AMD all sliding. Despite NVIDIA CEO Jensen Huang's assertion that there is no sign of a memory glut by 2029, the immediate market reaction is bearish, reflecting fears of a capex slowdown or demand destruction in the AI hardware cycle. Meta Platforms shares fell 6% as the market focused on the company's aggressive capital spending plans for AI infrastructure rather than its earnings beat. This sentiment is dragging down broader tech ETFs and highlighting investor fatigue with high capex requirements that may not yield immediate revenue returns. The move signals a rotation away from high-multiple tech names that are heavy investors in unproven AI monetization paths.
Semiconductor Selloff
The semiconductor sector is experiencing a coordinated selloff, triggered by Lam Research's 10% drop on weak guidance. The weakness has spread to equipment and memory names, with Applied Materials, Marvell, Western Digital, Intel, and AMD all sliding. Despite NVIDIA CEO Jensen Huang's assertion that there is no sign of a memory glut by 2029, the immediate market reaction is bearish, reflecting fears of a capex slowdown or demand destruction in the AI hardware cycle.
Meta Platforms shares fell 6% as the market focused on the company's aggressive capital spending plans for AI infrastructure rather than its earnings beat. This sentiment is dragging down broader tech ETFs and highlighting investor fatigue with high capex requirements that may not yield immediate revenue returns. The move signals a rotation away from high-multiple tech names that are heavy investors in unproven AI monetization paths.