Are semiconductor stocks, AI trade in recovery mode after selloff? - Yahoo Finance

Following a significant market correction last Friday, the semiconductor and AI sectors are showing signs of recovery. The Nasdaq Composite dropped over 4% on Friday, with the technology sector and se... Read original →

The recent tech selloff reflects valuation normalization, not deteriorating fundamentals. Technologically, rigid dependencies on 3nm nodes and EUV tools have locked in supply chains; TSMC’s (Taiwan, China) AI chip collaboration with NVIDIA is spiking demand for HBM and advanced packaging, pulling SK Hynix deeper into the stack. On compliance, U.S. export controls are forcing costly non-U.S. fab diversification, inflating capex. Strategically, Broadcom’s push into custom AI ASICs and NVIDIA’s open ecosystem aim to close the window for AMD and Intel. Despite near-term noise from SpaceX’s IPO or CPI data, global AI infrastructure build-out remains unstoppable over the next 12–24 months. Firms with leading-edge capacity and geopolitical neutrality will command premium pricing amid U.S.-EU-China manufacturing subsidy races.