WS #16040
The market is aggressively repricing the credit risks associated with the AI infrastructure buildout, leading to a broad selloff in technology and semiconductor stocks. The VanEck Semiconductor ETF (SMH) is on track for its worst weekly decline since July, down 8%, while CoreWeave stock has crashed 20% amid fears that debt-financed capex is unsustainable. Analysts are cutting price targets across the sector, including storage giants Western Digital and Seagate, as investors rotate out of high-multiple growth names in favor of value and defensive assets.
AI Credit and Tech Selloff
The market is aggressively repricing the credit risks associated with the AI infrastructure buildout, leading to a broad selloff in technology and semiconductor stocks. The VanEck Semiconductor ETF (SMH) is on track for its worst weekly decline since July, down 8%, while CoreWeave stock has crashed 20% amid fears that debt-financed capex is unsustainable. Analysts are cutting price targets across the sector, including storage giants Western Digital and Seagate, as investors rotate out of high-multiple growth names in favor of value and defensive assets.