Chip wreck vs tech pullback (with Caroline Hepker; Stephen Carroll)

The selloff is a 'chip wreck' driven by extreme positioning and hedge fund rotation, not a broad tech pullback. The AI rally is overdone in semiconductors, but the Nasdaq remains up over 30% since March.

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Jay Hatfield 7.5

Chip wreck vs tech pullback (with Caroline Hepker; Stephen Carroll)

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Hatfield describes the selloff as a 'chip wreck' driven by extreme hedge fund rotation, not a fundamental breakdown. He sees it as overdone but does not call for a sustained decline, implying near-term volatility rather than a clear directional trend.

Stephen Carroll

Stocks are failing to halt a decline after a tech-led selloff revived concerns that the AI rally has gone too far. Chip makers led the Philadelphia semiconductor index to a 7.9% plunge.
Jay Hatfield

This is not a tech pullback, it's a chip wreck. There was a huge rotation. I told our traders to take some chip exposure off yesterday. It's getting too extreme. Hedge funds were buying chips and selling Mag 7 and other tech, then it rolled over.
Stephen Carroll

Even with that assessment, the Nasdaq is still up more than 30% since the end of March.

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