WS #17011
The AI trade is undergoing a violent repricing, with the Nasdaq posting its worst daily performance since April 2025. The selloff has broadened beyond speculative names to include mega-caps, with Nvidia and Tesla suffering massive market cap erosion. Key institutional investors, including Lone Pine and Walleye, are reportedly liquidating positions in semiconductor leaders like AMD, ASML, and Micron, suggesting the rout is driven by fundamental de-risking rather than just technical factors. This marks a significant escalation from previous corrections, as the market begins to question the near-term ROI of massive AI infrastructure spend.
AI Equity Rout and Valuation Reset
The AI trade is undergoing a violent repricing, with the Nasdaq posting its worst daily performance since April 2025. The selloff has broadened beyond speculative names to include mega-caps, with Nvidia and Tesla suffering massive market cap erosion. Key institutional investors, including Lone Pine and Walleye, are reportedly liquidating positions in semiconductor leaders like AMD, ASML, and Micron, suggesting the rout is driven by fundamental de-risking rather than just technical factors. This marks a significant escalation from previous corrections, as the market begins to question the near-term ROI of massive AI infrastructure spend.