U.S. stocks rallied last night, but semiconductors were singled out and hammered😮💨
The S&P 500 rose 1.6%, while Micron
$MU , SanDisk
$SNDK , and Marvell all fell more than 7%, and Nvidia wasn't spared either
I think this sell-off needs to be viewed in the context of the U.S. midterm elections:
The Democrats won the Texas gubernatorial election, and the incoming governor had previously explicitly called for a pause on approvals for new data centers until stricter regulatory rules are introduced
This is a major shift:
In the past, AI chips were priced with an implicit assumption: tech giants