Semiconductor stocks flirt with a key line after brutal tech selloff

What happened: Semiconductor stocks are testing their 200-day moving average for the first time in 16 months after a sharp technology selloff tied to concerns over returns on heavy AI spending. Key numbers: iShares PHLX Semiconductor ETF (SOXX) fell 6.62% on Thursday and touched its 200-day moving average at $473.39. The Philadelphia Semiconductor Index (SOX) also fell sharply. Why it matters: Investors are scrutinizing the scale of AI infrastructure spending and whether the resulting returns will justify the investment, adding to volatility across the sector. Market: -6.8% today ($475.69), +51.8% YTD, 1.8x vol — as of 22:46 UTC

Semiconductor stocks are testing their 200-day moving average for the first time in 16 months after a sharp technology selloff tied to concerns over returns on heavy AI spending.

Investors are scrutinizing the scale of AI infrastructure spending and whether the resulting returns will justify the investment, adding to volatility across the sector. Market: -6.8% today ($475.69), +51.8% YTD, 1.8x vol — as of 22:46 UTC