SMH is trading 4.3% down as chip stocks extend a multi-day selloff driven by doubts about the sustainability of AI-related spending and fears of rising Chinese competition in advanced processors.
- A sharp overnight rout in Asian semiconductor names and a broader rotation out of megacap tech into cyclicals are amplifying the decline.
- The sector-wide risk-off move is hitting major AI chip leaders and equipment makers, dragging the entire semiconductor complex lower despite isolated positive partnership news.