Tech Equities

The SOXX semiconductor index has fallen roughly 25% from highs, with leveraged semiconductor ETFs down about 62%, even as KLA and Amkor posted record or better-than-expected quarterly results. SK hynix locked in long-term AI-memory supply deals and GlobalFoundries secured a $300M CHIPS R&D award, while Nvidia's $5B bet on Safe Superintelligence and continued M&A activity show corporate conviction in AI infrastructure has not wavered.

AI-exposed equities like NVIDIA continue posting outsized gains even as CPI holds at 3.8% and Nobel laureate Daron Acemoglu argues AI has delivered no measurable productivity gains. The Iran conflict has added $857 annually to average U.S. household gasoline costs, tightening consumer budgets and raising questions about whether AI investment can sustain its premium. Monetary policy uncertainty compounds the pressure on growth-stock multiples.

U.S. CPI surged from 2.4% in February 2026 to 3.3% in March 2026, driven partly by Iran war energy disruptions via the Strait of Hormuz. Futures markets now price in just a 1-in-3 chance of any Fed rate cut in 2026. Cloud ETFs WCLD, CLOD, and SKYY are down 22%, 14%, and 10% year-to-date respectively.

Nio GeniTech closed a $330M Series A for autonomous driving chips while photonics startup Olix plans 2027 product launch, part of a wave of custom AI silicon funding. Language Processing Units with SRAM-centric designs are emerging as alternatives to Nvidia's general-purpose GPUs. OpenAI's $840B and Anthropic's $380B valuations are accelerating enterprise demand for specialized inference chips and data center equipment.