AI Trade Under Heavy Selling Pressure; Micron Surges on Record Revenue; SK Hynix Redirects Capacity; Apple Falls 6%
Key Questions
Why is the AI trade facing heavy selling pressure?
Growing skepticism about AI investment returns is driving the sell-off, with SK Hynix redirecting capacity serving as a concrete negative signal. NVDA and other AI names have turned sluggish amid the rotation reversal.
How did Micron perform in its latest earnings report?
Micron beat expectations with record revenue, surging 15.7% on the news. However, the gains failed to lift the broader Nasdaq due to a call wall at $1,200 resistance.
What caused Apple's stock to fall 6% recently?
Apple raised prices on MacBooks and iPads in an intra-cycle move, signaling AI-related cost pass-through and potential demand friction. This made it the worst Dow performer that session.
What other tech or AI-related moves were reported alongside the sell-off?
Intel announced a chip deal with Apple for domestic production. SpaceX shares slid 6% in their first decline since IPO.
What is UBS CIO's view on the broader market beyond AI stocks?
UBS CIO remains bullish on broader market gains outside the concentrated AI trade, viewing the pullback as a potential opportunity in a strong rally.
The AI trade is under heavy selling pressure amid growing skepticism about AI investments. SK Hynix redirecting capacity is concrete negative signal. Micron earnings beat expectations, stock surged 15.7% on record revenue but failed to lift Nasdaq—call wall at $1,200 key resistance. Intel announced chip deal with Apple for domestic production. Apple fell 6% on intra-cycle MacBook/iPad price hikes, signaling AI cost pass-through and demand friction. SpaceX slid 6% in first decline since IPO. NVDA sluggish. Rotation into semiconductors reversed. AI stock concentration remains key risk. UBS CIO bullish on broader market gains beyond AI.