SOXX is trading 3.5% down today as investors question whether the massive AI-driven capex boom justifies current valuations following Taiwan Semiconductor Manufacturing Co.'s increased spending plans.
- The Philadelphia Semiconductor Index has officially entered a technical bear market, extending a multi-day selloff across the chip and AI sectors.
- Broader risk-off sentiment is being fueled by rising interest rate fears and escalating geopolitical tensions between the U.S. and Iran.
- Market participants are increasingly skeptical of the sustainability of high semiconductor valuations relative to the scale of ongoing infrastructure investment.