Semiconductor stocks’ pullback is a ‘healthy’ correction, Market Vector Indexes CEO says - Fox Business

Market Vector Indexes CEO Steven Schoenfeld comments on the recent market pullback in semiconductor and AI stocks, describing it as a 'healthy correction.' Discussing Oracle's fourth-quarter earnings ... Read original →

The current semiconductor and AI stock pullback isn't a bubble burst but a necessary recalibration after 18 months of valuation excess. Technologically, slowing AI training chip demand is rippling into advanced packaging and HBM supply chains, prompting TSMC (Taiwan, China) and SK Hynix to moderate capex. Regulatory pressures—especially U.S. export controls—have raised operational costs by 12–15% as firms reconfigure global footprints. Strategically, NVIDIA is deepening software lock-in, while AMD and Intel pivot to edge AI and custom silicon niches. Over the next 12–24 months, a brutal shakeout looms: AI plays without real revenue will vanish, while vertically integrated players—those validating chips via Oracle’s cloud infrastructure—will lead the recovery. A SpaceX IPO could divert growth capital, amplifying volatility but forcing the sector back to fundamentals.