WS #16094
The SOX index has fallen for eight consecutive sessions, a losing streak not seen since the 2008 financial crisis, driven by broad risk-off sentiment and valuation compression. However, a $7 billion inflow into leveraged chip funds suggests institutional accumulation at these levels. Despite the price weakness, the fundamental AI demand thesis holds firm, with major deals announced between NVIDIA and Siemens, and NVIDIA infrastructure being adopted by Santander, indicating that the hardware demand cycle is intact despite the equity drawdown.
Semiconductor Capitulation and AI Resilience
The SOX index has fallen for eight consecutive sessions, a losing streak not seen since the 2008 financial crisis, driven by broad risk-off sentiment and valuation compression. However, a $7 billion inflow into leveraged chip funds suggests institutional accumulation at these levels. Despite the price weakness, the fundamental AI demand thesis holds firm, with major deals announced between NVIDIA and Siemens, and NVIDIA infrastructure being adopted by Santander, indicating that the hardware demand cycle is intact despite the equity drawdown.