Chip, Storage Shares Continue to Fall. SOXL Down Nearly 5%; Micron, Western Digital, SanDisk, ARM, Marvell, Seagate Tech Down Around 3%

Tiger Newspress16:02

Chip, storage shares continued to fall in premarket trading. SOXL down nearly 5%; Micron, Western Digital, SanDisk, ARM Holdings, Marvell, Seagate Tech down around 3%.

Meta's plan to sell surplus computing capacity has shaken the market's core belief in the absolute scarcity of such power, triggering a significant capital outflow from semiconductor stocks and signaling a potential turning point in investor tolerance for unchecked capital expenditure by tech giants.

Wall Street institutions widely interpret this as a major narrative shift in the AI investment cycle. Capital focus is rapidly pivoting away from pure hardware infrastructure build-out towards corporate free cash flow stability and computing power utilization. Investors are now rewarding tech giants that demonstrate financial discipline with significant capital flows.

This fundamental recalibration is not only altering the power dynamics between hyperscale cloud providers and their chip suppliers but has also directly led to a breakdown in crowded momentum trading strategies. This sets the stage for new uncertainties heading into the upcoming U.S. earnings season and market liquidity environment.

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