🔴 SMH is trading 3.2% down today as investors reassess AI valuations and geopolitical risks

SMH is trading 3.2% down today as investors reassess lofty AI-driven valuations following a historic rally and escalating geopolitical tensions.

• The Philadelphia Semiconductor Index has entered a technical bear phase, with sector ETFs surrendering significant gains as risk-off sentiment grows.
• Despite TSMC reporting record profits, its increased capital expenditure plans, combined with hawkish Federal Reserve signals and U.S.–Iran tensions, are weighing on capital-intensive chip stocks.
• The selloff marks a multi-day decline for the semiconductor sector as the market pivots away from high-valuation growth plays.