iShares Semiconductor ETF is trading 4.9% down today as investors accelerate a rotation out of richly valued chip and mega-cap tech names following Broadcom’s disappointing revenue print and AI guidance.
- The semiconductor complex is facing broad profit-taking as traders reassess AI-driven earnings expectations in light of recent sector performance.
- Weakness in key holdings like Broadcom and NVIDIA is dragging the ETF lower, causing the information technology sector to underperform major indices.
- The downturn comes despite calmer Treasury yields, highlighting a specific shift in sentiment regarding high-growth technology valuations.