🟢 SMH is trading 1.7% up today as investors rotate back into chip and AI names after a sharp selloff

SMH is trading 1.7% up today as investors tentatively rotate back into beaten-down semiconductor and AI stocks following a sharp pullback driven by profit-taking and a selloff in SK Hynix.

• The rebound follows a period of sector-wide weakness that saw the broader semiconductor complex weighed down by valuation concerns in early July.
• Market sentiment remains cautious as ongoing geopolitical tensions around the Strait of Hormuz continue to provide a backdrop of macro uncertainty.
• The move marks a tentative recovery for the VanEck Semiconductor ETF as buyers return to the complex despite recent volatility.