Geo Chen
· Fidenza Macro
· June 09, 2026 at 15:01
· ⏱ 2 min read
| Read on Substack ↗
Summary
The recent AI selloff is a healthy correction of overheated sentiment, and the structural AI boom remains intact with catalysts like Anthropic's Mythos release. However, multiple macro and funding headwinds—Broadcom earnings disappointment, large equity raises (SpaceX $75B, Google $85B), rising rate expectations, and geopolitical tensions—could prolong consolidation or trigger further downside. The author is using weakness to add positions, indicating conviction in the long-term thesis.
•Broadcom sold off after failing to beat elevated earnings expectations, fueling fears that AI stocks are priced for perfection.
•SpaceX is raising $75 billion at a $1.75 trillion valuation, and Google announced an $85 billion ATM equity offering (including a $10 billion private placement with Berkshire Hathaway), raising concerns about digesting equity supply.
•US non-farm payrolls came in sharply higher, causing rate hike expectations for 2026 to jump from 16 bp to 26 bp.
•Despite multiple negative catalysts, the SMH semiconductor ETF rallied 5% to recover half its losses, suggesting resilient buying interest.