WS #16619
The technology sector is experiencing a violent correction as the market aggressively reprices AI capital expenditure. Intel's disastrous quarterly guidance triggered a massive sell-off, dragging the broader semiconductor index (SOXX) down 17% over the month. Alphabet's earnings miss wiped out nearly $500 billion in market value, signaling that investors are losing patience with unprofitable AI spending. This trend is broadening across the MAG7 and chip supply chain, with Broadcom, AMD, and Micron all posting significant losses.
Tech Selloff and AI Capex Repricing
The technology sector is experiencing a violent correction as the market aggressively reprices AI capital expenditure. Intel's disastrous quarterly guidance triggered a massive sell-off, dragging the broader semiconductor index (SOXX) down 17% over the month. Alphabet's earnings miss wiped out nearly $500 billion in market value, signaling that investors are losing patience with unprofitable AI spending. This trend is broadening across the MAG7 and chip supply chain, with Broadcom, AMD, and Micron all posting significant losses.