Global Market: AI stocks take a breather after blistering rally as investors reassess valuations

Global AI and semiconductor stocks are pulling back after an extended rally as investors reassess stretched valuations and demand stronger earnings growth to justify premium pricing. Chipmakers, memory manufacturers and storage companies have led the decline, with even robust financial results failing to satisfy elevated market expectations. Analysts maintain that the long-term AI structural story remains intact, though near-term volatility is expected as markets recalibrate and rotate toward software and cloud names trading at more reasonable valuations.