🔴 SMH.L is trading 5.4% down today as the global semiconductor and AI sector selloff deepens

SMH.L is trading 5.4% down today as the global semiconductor and AI complex extends last week’s sharp selloff.

• Investors are rotating out of high-valuation chip names following TSMC’s aggressive capex plans and mounting concerns regarding near-term AI monetization.
• Broader risk-off sentiment is being fueled by escalating Middle East tensions and rising oil prices, impacting macro and geopolitical stability.
• The ETF, which is closely tied to major U.S. semiconductor stocks, has entered a bear market amid the current wave of macro and geopolitical uncertainty.