SMH.MI is trading 3.7% down today as part of a broader semiconductor-sector downturn linked to concerns over stretched AI-related valuations and massive chip capex plans.

  • A sharp global selloff in technology and semiconductor shares since July 16–17, 2026, is pressuring the entire sector and dragging the VanEck Semiconductor UCITS ETF lower.
  • Rising geopolitical tensions and higher interest rates in key chip-producing economies like South Korea are adding further downward pressure on the industry.
  • Investors are increasingly cautious regarding the sustainability of massive capital expenditure plans within the artificial intelligence space.