Barclays says AI stock rally may have peaked as semiconductor ETF drops 11% in October
AI Market Summary
Barclays argues the AI-driven equity rally may have peaked, favoring profitable names over speculative AI exposure. Semiconductor shares fell roughly 11% in October, with $1.64 trillion erased over six sessions and $4.75 billion exiting global tech funds. Rising financing costs and scrutiny of AI capital spending weigh on hardware suppliers. Expect continued rotation away from high-multiple AI hardware toward cash-generative large caps; falling bond yields may soften downside for broader indices.
Impact level
● High
Affected assets
NCSKSOXX2USD/USDT-0.46%
AI Insight · NCSKSOXX2USD/USDTAI Insight
▼ Bearish
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Barclays said in an October 16 strategy note that the strongest AI stock rally may be over. A semiconductor ETF fell about 11% in October. The bank favors profitable companies with solid balance sheets and achievable earnings. A chip selloff erased roughly 1.64 trillion dollars over six trading days. Nasdaq fell 4.5% in the week ended October 16.
