Veteran strategist Ed Yardeni warns that the S&P 500 Semiconductors stock price index could fall another 12% to its 200-day moving average, even as the iShares Semiconductor ETF has already plunged 20.3% from its June 2 peak and entered bear market territory. The selloff has been driven by heavy margin calls on South Korean tech giants Samsung and SK Hynix, along with the launch of Chinese AI lab Moonshot's Kimi K3 model, which revived fears of AI commoditization. Yardeni Research downgraded the S&P 500 Information Technology sector to market weight in December and now advocates rotating into Financials and Health Care, which are holding up well amid the tech rout. The Roundhill Memory ETF, which tracks hyper-growth memory names, has fallen roughly 35% from its June 22 peak, while the broader S&P 500 remains just 2% below its all-time high.
SK Hynix IncHeavy margin calls on SK Hynix are a key driver of the semiconductor selloff, directly pressuring the stock.
Samsung Electronics Co LtdHeavy margin calls on Samsung are a key driver of the semiconductor selloff, directly pressuring the stock.