U.S. · ALPHAGBM RESEARCH
At a glanceGlobal AI technology stocks rebounded on October 19 after a concentrated selloff. The Nasdaq opened more than 1% higher, the Philadelphia Semiconductor Index gained over 3%, and chip shares including NVIDIA, Micron and Advanced Micro Devices advanced. South Korea’s KOSPI closed up 1.76% after falling intraday. Through October 16, the Philadelphia Semiconductor Index had declined for 8 consecutive trading sessions, its longest losing streak since 2008, dropping more than 13% over that period; the report estimated that about $2 trillion in market value was erased. Analyst Dan Ives said the selloff reflected financing issues rather than weakening demand for AI computing capacity, citing CoreWeave’s roughly $104 billion of backlog at the end of the second quarter. UBS Global Wealth Management’s Chief Investment Office raised its forecast for global AI capital expenditure in 2026 to $900 billion, up 84% year on year, and projected $1.2 trillion in 2027, up 33%, while saying markets would pay closer attention to companies’ ability to monetize AI investment. CICC, Huaxin Securities and Guolian Minsheng Securities separately highlighted short-term risks involving liquidity, interest rates, leverage and returns on capital spending.
Summary
Global AI technology stocks rebounded on October 19 after a concentrated selloff. The Nasdaq opened more than 1% higher, the Philadelphia Semiconductor Index gained over 3%, and chip shares including NVIDIA, Micron and Advanced Micro Devices advanced. South Korea’s KOSPI closed up 1.76% after falling intraday. Through October 16, the Philadelphia Semiconductor Index had declined for 8 consecutive trading sessions, its longest losing streak since 2008, dropping more than 13% over that period; the report estimated that about $2 trillion in market value was erased. Analyst Dan Ives said the selloff reflected financing issues rather than weakening demand for AI computing capacity, citing CoreWeave’s roughly $104 billion of backlog at the end of the second quarter. UBS Global Wealth Management’s Chief Investment Office raised its forecast for global AI capital expenditure in 2026 to $900 billion, up 84% year on year, and projected $1.2 trillion in 2027, up 33%, while saying markets would pay closer attention to companies’ ability to monetize AI investment. CICC, Huaxin Securities and Guolian Minsheng Securities separately highlighted short-term risks involving liquidity, interest rates, leverage and returns on capital spending.