AI & Semis Sell-Off: Hedge Funds Exit, Retail Rushes In
Hedge funds are dumping AI stocks at record pace while retail pours a record $7B into 3x leveraged chip ETFs. NVDA/AVGO credit default swaps hit all-time wides, and DeepSeek-Huawei chip collaboration adds a new competitive threat to Nvidia.
What we know
A major theme across sources: the 'Great AI Handoff.' an account on X reports hedge funds dumping AI at record pace as retail poured $7B into $SOXL (3x semis ETF) in one week. Another account on X adds that $SOXL is down ~55% since June. NVDA and AVGO CDS hit all-time wides, signaling credit stress. Meanwhile several accounts on X break news that DeepSeek and Huawei are collaborating on next-gen AI chips to challenge Nvidia. Apple is notably diverging — hitting ATH while Nasdaq sells off. US AI model token consumption has also plateaued. Despite this, another account on X dismisses DeepSeek/Huawei as 'another scare,' pointing to $AMZN recovering 5 days of losses in 1 day.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.