Global technology stocks have experienced continued volatility recently. Against a backdrop of significant selling in the semiconductor sector last week and rising geopolitical risks, investors are widely adopting a wait-and-see approach ahead of earnings reports from several tech giants this week.

The Philadelphia Semiconductor Index fell approximately 10% last week, marking its largest weekly decline in over a year and retreating more than 20% from its historical high in June, entering a technical bear market. Analysts believe this pullback stems more from capital rotation and profit-taking rather than a deterioration in fundamentals. Prior to this, semiconductor stock valuations had already priced in near-perfect demand expectations, making them inherently susceptible to a correction after a rapid rise.

Factors causing market concern include: the release of a reportedly world-leading open-source AI model by Chinese AI startup Moonshot AI, which has prompted investors to re-examine the return prospects of massive AI investments by U.S. tech giants. Concurrently, reports indicate that the release schedule for Google's flagship AI model, Gemini 3.5 Pro, is several months behind its original plan.

The market is closely watching this week's earnings from tech giants such as Alphabet, Tesla, Intel, and IBM. The performance of these companies will be a crucial test of whether the AI capital expenditure boom can justify current high valuations. Some analysts point out that if Alphabet signals any reduction in its AI investment budget, it could trigger a chain reaction across the entire AI industry chain.

Simultaneously, escalating tensions in the Middle East have pushed international oil prices higher, with Brent crude once breaking above $90 per barrel, reigniting market concerns about inflation and interest rate hikes, further suppressing risk appetite.