Behind Nvidia and AMD’s plunge, what Wall Street fears most isn’t falling behind technologically!

This U.S. stock market sell-off looks like a chip stock rout on the surface, but in reality, the market is reassessing the entire AI industry chain.
The Nasdaq fell 5.5% on Thursday, Nvidia dropped 9.3%, AMD fell 17.3%, and the semiconductor index declined about 12%. Such a sharp correction is clearly about more than ordinary investors being in a bad mood.
I believe the AI trade is moving from its first phase into its second.
In the first phase, the market traded on imagination: whoever had GPUs and computing power could become the next winner.
In the second phase, the market is starting to do the math: How much are data centers costing? How much is electricity? What are financing costs? Can AI service revenue cover capital expenditures?
That is what truly deserves attention in this round of market adjustments.
If AI applications continue to grow, high-quality chip companies will still have opportunities. But if capital expenditure growth slows, some overvalued companies may face a more prolonged correction.
So I favor tech giants with real business models, as well as companies that can consistently generate free cash flow.
Chip stocks aren’t off-limits, but you have to distinguish between order quality, profit margins, and valuations.
AI won’t disappear because of one sharp sell-off, but investors may relearn rationality after a valuation correction.
The most expensive thing in the market has never been chips, but excessive optimism!#每周来晒 and #美股史诗级抛售 $NVDA