The article directly notes that SOXX remained up 67.7% for the year even after July's decline, and uses momentum dynamics to explain why the AI hardware reversal was so aggressive. This leaves the sem
The article directly notes that SOXX remained up 67.7% for the year even after July's decline, and uses momentum dynamics to explain why the AI hardware reversal was so aggressive. This leaves the semiconductor complex exposed to further trend-following and deleveraging risk.
Risk: If positioning washes out quickly and the underlying AI buildout thesis remains intact, SOXX could stabilize or rebound sooner than the momentum setup suggests.
The article highlights KOSPI's 22% July plunge, its worst month since 2008, while noting it still retained a huge year-to-date gain. Korea's heavily semiconductor- and memory-weighted market is a dire
The article highlights KOSPI's 22% July plunge, its worst month since 2008, while noting it still retained a huge year-to-date gain. Korea's heavily semiconductor- and memory-weighted market is a direct expression of the AI hardware crowding and unwind, so EWY acts as a liquid proxy for that risk.
Risk: Korean equities are also influenced by domestic macro, currency, and idiosyncratic factors, so EWY may not perfectly isolate the AI-infrastructure positioning trade.