Despite the bullish session on Wall Street, the SOX index retreated another 3.5% on fears around the AI data centre build-out touched on earlier and ongoing fears around AI payback as investment surges. However, we still believe the AI revolution is very real and is just experiencing a reality check, as so many sectors have in 2026, such as gold, defence and lithium.
The SOX index was our “Chart of the Week” on Monday, where we called it down towards 10,000, the point at which we would turn bullish; let’s see if this sector also reverses higher in the coming sessions, as the broader market did overnight.
- We can still see the SOX Index spiking a few percent lower, but the risk/reward is looking attractive following the index’s more than 30% fall.
MM is bullish towards the SOX index
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