AI-driven semiconductor demand remains strong, but financing risks prompt a Strong Sell rating on US equities and semiconductor ETFs.

Demand for AI infrastructure is driving strong growth in the semiconductor sector, with companies frequently beating high expectations. However, this growth increasingly relies on debt, equity, and private capital, making it vulnerable to shifts in sovereign debt, interest rates, and leverage conditions. Due to these financing risks and fragile market conditions, the analyst recommends a Strong Sell rating on broad U.S. equities and semiconductor ETFs despite the current positive performance.