SMH is trading 2.1% down as the semiconductor sector extends a multi-day selloff driven by doubts about the durability of AI infrastructure spending and intensifying Chinese competition in advanced chipmaking tools.
- Global semiconductor weakness originating in Asian markets is adding pressure to AI-exposed chip names.
- Investors are rotating into less tech-sensitive sectors ahead of the upcoming Fed decision and major tech earnings.
- Concerns regarding competition in advanced chipmaking tools from China are further weighing on the sector.