Invesco PHLX Semiconductor ETF is trading 4.2% down today as investors rotate out of high-flying AI chip names following Broadcom's underwhelming market reaction to strong results.
- Broadcom’s strong AI earnings and guidance triggered widespread profit-taking across the semiconductor sector, weighing on the broader Nasdaq and information technology space.
- Capital is shifting into value and industrial sectors as investors seek defensive positioning amid heightened U.S.–Iran tensions.
- The sharp decline marks a significant reversal for semiconductor-heavy funds as market participants lock in gains from recent AI-driven rallies.