WS #16939
The semiconductor sector is facing a severe valuation reset, with AMD, Qualcomm, Broadcom, Micron, and Western Digital all dropping between 8% and 12% in early trading. This selloff is driven by a combination of profit-taking after recent rallies and renewed fears that AI capex is outpacing near-term monetization. The collapse of the SMH ETF (down >5.5%) confirms this is a sector-wide institutional exit rather than an idiosyncratic event. Defensive tech like Apple is holding up better, but the high-beta chip names are being liquidated aggressively.
Semiconductor and Tech Selloff
The semiconductor sector is facing a severe valuation reset, with AMD, Qualcomm, Broadcom, Micron, and Western Digital all dropping between 8% and 12% in early trading. This selloff is driven by a combination of profit-taking after recent rallies and renewed fears that AI capex is outpacing near-term monetization. The collapse of the SMH ETF (down >5.5%) confirms this is a sector-wide institutional exit rather than an idiosyncratic event. Defensive tech like Apple is holding up better, but the high-beta chip names are being liquidated aggressively.