🔴 SMH is trading 4.4% down today as AI chip trade resets on capex and geopolitical fears

SMH is trading 4.4% down today as the semiconductor sector faces a broad selloff driven by valuation concerns and rising industry costs.

• Investors are reassessing the AI chip boom as industry leaders like TSMC signal sharply higher capital spending, raising long-term margin and cost concerns.
• Geopolitical tensions surrounding the U.S.-Iran conflict and renewed rate-hike fears are further weighing on risk appetite for high-beta semiconductor stocks.
• The decline reflects a significant reset for the sector as the market weighs overheated valuations against mounting macroeconomic headwinds.