$YieldMax Semiconductor Portfolio Option Income ETF(CHPY)$ The AI selloff is getting more and more disconnected from the underlying fundamentals.
This selloff was triggered by the earnings report from $Alphabet(GOOGL)$ , despite continued growth in AI infrastructure demand and cloud computing.
Short sellers are taking advantage of fragile sentiment. Earnings-related selling created the opening, and bearish positioning and momentum amplified the downside. This stock selloff does not mean the AI growth cycle is over.
$Taiwan Semiconductor Manufacturing(TSM)$ and $NVIDIA(NVDA)$ remain positioned at the center of an infrastructure buildout that is still expanding. Hyperscaler AI spending isn't disappearing just because Wall Street temporarily gets nervous about returns. This is a valuation reset and a sentiment battle, not evidence that AI demand has collapsed.
I still believe the recovery into 2027 remains the most likely outcome. The market is creating volatility, but the underlying AI opportunity hasn't disappeared.
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