Tech Slump Deepens

Summary

Technology stocks fell sharply amid AI spending anxiety and semiconductor supply concerns. Guests discussed the role of levered ETFs in amplifying the selloff, the headwinds for memory chipmakers from rising CapEx and demand destruction, and the negative signal from Apple's price-hike-driven stock decline. The IPO market is cooling, and AI companies face questions about revenue sustainability.

• Nasdaq Composite fell 4.5% for the week as chip stocks led losses.
• Cameron Crise highlighted levered ETFs as a new source of forced selling that can amplify market declines.
• SK Hynix and Samsung are planning huge CapEx increases, making their investment prospects less attractive.
• Mandeep Singh warned that high memory prices are driving demand destruction and that Micron and SK Hynix face price caps through long-term contracts.
• Apple shares tumbled after the company raised prices, signaling that technology is now a driver of inflation and demand destruction.
• The cooling IPO market is exemplified by a space company falling back to its IPO price and OpenAI reportedly delaying its IPO.
• US restrictions on advanced AI models are proving difficult to enforce and are not expected to block foreign access broadly.