SMH3.L is trading 10.2% down today as a global semiconductor selloff intensifies, driven by fears of increased Chinese competition and concerns over the returns on AI infrastructure investments.
- The fund's 3x leveraged exposure is amplifying sector declines that began in Asian markets and have since spread to U.S. technology stocks.
- Investors are rotating out of high-growth tech and into less rate-sensitive, value-oriented sectors ahead of the upcoming Federal Reserve meeting.
- Sentiment is further pressured by specific concerns regarding intensified competition from Chinese chipmaking machinery manufacturers.