Summary
The article argues that the semiconductor selloff on Thursday was driven by a combination of macro factors (Middle East, rates, stretched valuations, crowded trade) and the emergence of Kimi from Moonshot, which gave a 'fundamental-sounding reason to sell.' The author is still researching and the full analysis is not included in the excerpt, but the selloff pushed AI names down 5-15% and the semiconductor index into bear market territory.
-
•Semiconductor index fell roughly 10% for the week and entered bear-market territory after dropping more than 20% from its June high.
-
•Many AI names dropped 5% to 15% on Thursday.
-
•Contributing factors to the selloff included escalation in the Middle East, concerns around rates, stretched semi valuations, a crowded trade, and the Kimi launch from Moonshot.