Nasdaq plunged 5.5% overnight! Nvidia and AMD plunged together— is the bull market really cooling off?

Wall Street was truly jolted awake this time!
U.S. stocks had a terrifying session on Thursday: the Nasdaq plunged 5.5%, the Philadelphia Semiconductor Index tumbled around 12%, Nvidia fell 9.3%, and AMD plunged as much as 17.3%. This was no ordinary pullback—it was like the entire AI sector had entered a free-fall contest!
I believe this sell-off can't be explained simply as short-term deleveraging. In the short term, the market had risen too much, prompting a wave of profit-taking, while algorithmic trading and risk controls further amplified the losses. But the deeper issue is that the market is beginning to question whether AI data centers can really earn back all that money.
Policy changes following the U.S. midterm elections have also added uncertainty to the outlook for data center construction. Even if chip sales are strong, order growth could cool if customers delay construction.
Going forward, I favor tech giants with ample cash flow, such as Microsoft, Apple, and Google, over blindly chasing every chip stock.
My strategy is to wait for the market to stabilize before looking for opportunities in high-quality chip companies. After all, the AI revolution may still be underway, but stocks don't go up forever.
Remember this: The technological revolution is real, and so is overpaying! #每周来晒 and #美股史诗级抛售
$AMD