U.S. semiconductor stocks made a strong comeback, with SOXX surging over 5% at the open.

During Tuesday's most pessimistic moment for the semiconductor sector, I mentioned that from a short-term technical perspective, there is no reason to be bearish on semiconductors before the SOXX index breaks below the 50-day moving average.

Fortunately, SOXX ultimately closed above the 50-day EMA. Even though geopolitical tensions in the Middle East escalated again yesterday, creating a major macro headwind, it still failed to push SOXX below that level.

The next major test will be earnings season, with the key focus being whether big tech will cut capital expenditures.

This is the AI mainline logic that has been repeatedly mentioned. Until it changes, the AI semiconductor bull market remains solid.

Looking back at the recent semiconductor correction, with a decline of nearly 20%, it has likely washed out a lot of high-leverage and gambler chips.

Therefore, everyone must avoid blindly adding leverage, especially when market sentiment is extremely bullish. A major pullback can knock you off the table, and any subsequent rebounds or new highs will have nothing to do with you.