WGMI is trading 5.6% down today as information technology stocks broadly sell off, driven by renewed concerns over lofty AI chip valuations and massive capital spending plans.
- TSMC’s record earnings and massive U.S. investment plans have intensified worries regarding the sustainability and long-term returns on AI infrastructure outlays.
- Rising global interest rates and escalating geopolitical risks are prompting investors to rotate out of high-growth semiconductors into more defensive sectors.
- The broader rotation away from tech-heavy assets is weighing heavily on ETFs focused on the semiconductor and digital infrastructure space.