SMH is trading 1.7% down today as the semiconductor sector pulls back following several days of sharp volatility and stretched gains in the information technology complex.
- The decline reflects an ongoing investor rotation away from expensive AI-driven chip names and into industrial and value sectors, weighing on the Nasdaq and semiconductor ETFs.
- Broader market caution regarding AI infrastructure costs and high valuations persists, even as individual components like Micron reported strong earnings results.
- Nasdaq-100 futures remain under pressure in pre-market trading as the tech sector struggles to maintain recent momentum amidst the shift in sentiment.