XSD is trading 2% up today, rebounding in pre-market action as investors reconsider the long-term value of massive AI infrastructure investments following last week’s sharp semiconductor selloff.
- The recovery follows a broader uptick in Nasdaq futures, signaling a shift away from concerns that high valuations were unjustified.
- Sentiment is bolstered by multibillion-dollar AI capex commitments from major players like TSMC and Oracle, which suggest sustained sector growth rather than a peak in AI demand.
- Market participants are increasingly viewing aggressive infrastructure spending as a fundamental driver of future earnings rather than a signal of a valuation bubble.