Chip Stocks Break Support as AI Trade Cracks on Charts
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The simultaneous hit from Tesla's lower capex guidance, Lam Research's soft forecast, and renewed AI-funding worries has produced a textbook distribution pattern across chip stocks, with heavy volume accompanying the breakdown—a classic sign of institutional selling rather than retail noise.
This kind of multi-catalyst, high-volume decline often triggers a bearish MACD crossover on daily charts, reinforcing that the prior uptrend's momentum has stalled.
The 'Fear & Greed' index sliding toward fear mirrors the chip sector's technical damage: when sentiment and price structure deteriorate together, short-term bounces tend to meet selling pressure at prior support-turned-resistance levels.