SMH is trading 1.7% lower as the semiconductor sector is pulled into a broader technology selloff driven by concerns over AI capex returns and new tariff uncertainty.
- Heavy post-earnings pressure in mega-cap tech and elevated oil prices are keeping risk appetite subdued, alongside expectations of higher-for-longer interest rates.
- The downward move outweighs positive long-term AI demand signals, such as TSMC’s $100 billion U.S. expansion pledge.