Lates News

Global chip manufacturers' market value has sharply declined, deepening investors' concerns about the high valuation of technology stocks. The selling wave led to the combined evaporation of around $500 billion market value in the Philadelphia Semiconductor Index on Tuesday and the index tracking Asian chip stocks on Wednesday. This major drop highlights that the semiconductor stock rally driven by the AI boom has been severely overbought. Since the low point in April, chip manufacturers' market value has increased by trillions of dollars as investors bet on the surge in AI computing demand. However, the current pullback reflects the market's growing concerns about the industry's profit prospects and overly high valuations, especially against the backdrop of potentially higher and longer interest rates. Chris Weston, research director at Pepperstone Group, said, The whole market is like a sea of blood, presenting a gloomy and subdued risk landscape. We must maintain an open mind and acknowledge that this adjustment could further expand. There is currently almost no reason to buy."