Market Strategist Says AI Selloff Is ‘Just Profit-Taking,' Not a Broken Story

A market strategist argues the sharp selloff in AI and semiconductor stocks is a normal profit-taking reset after an extended, overbought rally rather than evidence that the AI growth story has broken. The article highlights that semiconductor ETFs fell hard in one session, but their year-to-date gains remain enormous, while the broader Nasdaq 100 held up better, suggesting a concentrated unwind rather than systemic stress. The strategist points to persistent AI infrastructure demand, supply bottlenecks lasting through at least 2028, and continued capital spending by hyperscalers and enterprises as reasons the long-term bullish case remains intact. The move is framed as a leverage-and-positioning flush, especially in retail-heavy Asian markets, with volatility still in a normal range.