On August 11, TMT Breakout reported that the U.S. tech market is undergoing a repricing, with funds beginning to shift from AI semiconductors to software, internet, and cloud service-related stocks. The Nasdaq 100 ETF saw a slight decline of about 30 basis points that day, with trading volume slowing as the market entered the latter half of earnings season. Investors are looking for companies with accelerating performance, improved narratives, and lower valuations. Software stocks like PLTR, TWLO, and TEAM received buying interest after their earnings reports, indicating that the market is willing to reprice for growth certainty. In contrast, the AI semiconductor sector has shown weaker performance; despite some companies reporting good results, their stock prices have struggled to attract new funds. TMTB explained that after a crowded rally in AI semiconductors, investors have become picky about short-term gains and narrative fulfillment. Companies like Micron still have a logic of supply-demand tension in the storage sector, but the overall semiconductor sector cannot rely solely on "strong AI demand" to drive a broad rally. Funds are more inclined to seek targets outside the AI chain that benefit from corporate IT spending and cloud computing expansion. The macro environment has also intensified this rotation, with oil prices rising about 5% before the CPI announcement and U.S. Treasury yields increasing by 4 to 6 basis points. The market has become sensitive to interest rates and inflation again, putting pressure on high valuation and crowded momentum trades, while companies that can provide evidence of cash flow, orders, or demand after earnings are more likely to attract funding attention.
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