U.S. AI stocks remain under pressure! Tonight, I’m leaning toward further weakness
It’s Monday, and U.S. stock futures rebounded briefly before turning lower again. More concerning than the indexes is that we still haven’t seen any meaningful return of money to the semiconductor sector.
The Philadelphia Semiconductor Index (SOX) fell about 5% last week. In premarket trading today, AMD, $MRVL , $MU ,
$SNDK , and other high-beta chip and memory stocks remained weak. NVDA has held up relatively well, but that’s not enough to show that the sector as a whole has bottomed. Memory stocks are a particular concern.
SK Hynix and Samsung fell about 4.5% and 4.4%, respectively, today. Micron was down nearly 2% at one point in premarket trading, while SanDisk fell 3.5%. The immediate catalyst was China’s CXMT announcing progress in next-generation, high-density DRAM technology, prompting the market to reassess the competitive landscape in the memory industry.
The bigger issue is still AI capital spending.
Investment in data centers, computing power, and network infrastructure keeps growing, but the high-interest-rate environment hasn’t fundamentally changed. The market is now concerned not just about AI demand, but also about when these massive investments will actually translate into profits and cash flow.
Optical communications is one of the few areas showing relative strength right now. LITE surged more than 5% last Friday, while COHR and CIEN also clearly outperformed many chip stocks. But if optical communications starts catching up on the downside tonight, the pullback within AI could widen further.
If the SOX rebounds tonight while semiconductor stocks keep falling, that’s not the kind of bottoming signal I want to see.
U.S. CPI and ASML’s earnings are due Wednesday, followed by TSMC’s earnings on Thursday. Both the macroeconomic backdrop and industry demand will face fresh tests.
The AI story isn’t over, but prices are starting to say otherwise.
#以太坊突破2500USDT
It’s Monday, and U.S. stock futures rebounded briefly before turning lower again. More concerning than the indexes is that we still haven’t seen any meaningful return of money to the semiconductor sector.
The Philadelphia Semiconductor Index (SOX) fell about 5% last week. In premarket trading today, AMD, $MRVL , $MU ,
$SNDK , and other high-beta chip and memory stocks remained weak. NVDA has held up relatively well, but that’s not enough to show that the sector as a whole has bottomed. Memory stocks are a particular concern.
SK Hynix and Samsung fell about 4.5% and 4.4%, respectively, today. Micron was down nearly 2% at one point in premarket trading, while SanDisk fell 3.5%. The immediate catalyst was China’s CXMT announcing progress in next-generation, high-density DRAM technology, prompting the market to reassess the competitive landscape in the memory industry.
The bigger issue is still AI capital spending.
Investment in data centers, computing power, and network infrastructure keeps growing, but the high-interest-rate environment hasn’t fundamentally changed. The market is now concerned not just about AI demand, but also about when these massive investments will actually translate into profits and cash flow.
Optical communications is one of the few areas showing relative strength right now. LITE surged more than 5% last Friday, while COHR and CIEN also clearly outperformed many chip stocks. But if optical communications starts catching up on the downside tonight, the pullback within AI could widen further.
If the SOX rebounds tonight while semiconductor stocks keep falling, that’s not the kind of bottoming signal I want to see.
U.S. CPI and ASML’s earnings are due Wednesday, followed by TSMC’s earnings on Thursday. Both the macroeconomic backdrop and industry demand will face fresh tests.
The AI story isn’t over, but prices are starting to say otherwise.
#以太坊突破2500USDT