🔴 SEMI.AX is trading 3.9% down today as profit-taking and skepticism over AI spending sustainability weigh on chip stocks

SEMI.AX is trading at A$38.28 (-3.92%) as semiconductor stocks face pressure from profit-taking following a significant AI-led rally.

• Investors are expressing skepticism regarding the long-term sustainability of AI spending and increasingly stretched valuations across the sector.
• A broader risk-off sentiment in technology, driven by Nasdaq weakness and geopolitical tensions, is further weighing on growth-oriented assets.
• Fragile market sentiment is being exacerbated by lower futures and ongoing concerns regarding inflation and Federal Reserve policy.