The semi trade has gotten dumped very hard over the past 2 months even though there hasn’t been any material sector related bad news - nothing that would indicate a slowdown in chip demand anyway.
I understand the semi trade was overcrowded and needed some relief, but major chip names are down 30-40% across the board, despite the latest earnings coming in more and more bullish (see micron, asml, tsm).
The extent of the selling on good news makes me think something else is going on.
Is there some upcoming announcement from hyperscalers about reduced capex that only insiders know about?
Or is the general market just taking a guess that capex will fall due to every chip and memory company (mu, asml, tsm) announcing price increases in their latest ERs?