This pullback in AI semiconductors is pretty interesting: AI demand is still clearly strong, and earnings are hitting records, yet stock prices are the first to give way.
After rising too much before, valuations got pushed too high, and now it’s the sentiment side that’s being tested.
I checked, and $NVDA is down 12% from its 52-week high, $MU has dropped by 30%, $SKHY is also down by about 30%, and several other stocks have fallen even more sharply. The worst one is down by 35%, while a few others are down a little over 30%, and some are also seeing double-digit pullbacks.
In simple terms, after going up too much, it has to consolidate.
After rising too much before, valuations got pushed too high, and now it’s the sentiment side that’s being tested.
I checked, and $NVDA is down 12% from its 52-week high, $MU has dropped by 30%, $SKHY is also down by about 30%, and several other stocks have fallen even more sharply. The worst one is down by 35%, while a few others are down a little over 30%, and some are also seeing double-digit pullbacks.
In simple terms, after going up too much, it has to consolidate.