Shares of AI infrastructure leaders Coherent, Ciena, and Teradyne fell sharply by around 10% or more, leading the S&P 500 lower on Tuesday. The sell-off reflects a rotation out of semiconductor and AI hardware stocks amid concerns over high valuations and off-balance-sheet AI commitments totaling trillions. Despite strong recent earnings and massive year-to-date gains, these stocks are vulnerable to sharp declines on risk-off days due to their stretched valuations. Analysts remain generally bullish, but investors are cautious as the 30-year Treasury yield hits a 19-year high, pressuring growth stock valuations. Long-term AI growth prospects remain intact despite short-term volatility.
Technology stocks are experiencing a rotation today with software ETFs like iShares Expanded Tech-Software ETF (IGV) up 0.6%, while semiconductor ETFs such as iShares Semiconductor ETF (SOXX) fall about 5.4%. This shift is driven by mixed signals on ...
Aehr Test Systems' stock rose about 8% following Jefferies' initiation of coverage with a Buy rating and a $175 price target, highlighting strong growth potential driven by AI and semiconductor testing demand. The firm noted its target is conservativ...
