Stock Track | iShares Semiconductor ETF Soars 5.03% in pre-market as AI Selloff Intensifies, Sparking Dip-Buying Interest

Stock Track
Jul 30

The iShares Semiconductor ETF (SOXX) surged 5.03% in pre-market trading Thursday, a sharp reversal that comes as a broader selloff in AI and tech stocks deepens.

The pre-market rally appears to be driven by a classic "buy the dip" mentality. According to a recent report, investors have been aggressively dumping tech and AI chip stocks, a trend that has now intensified. This selloff has created a potential entry point, with Morgan Stanley suggesting strategies for how to buy into the weakness. The ETF's significant upswing suggests that traders are acting on this perspective, viewing the recent declines in semiconductor names as an overreaction and an opportunity to accumulate shares at a discount.

The positive sentiment in the semiconductor space may also be supported by ongoing strategic developments in the AI chip industry, such as NVIDIA's deep investment in open-source AI models and its efforts to build a domestic ecosystem, which could signal long-term demand for advanced chips.

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