Paul Markham, head of global equities at GAM Investments, stated on July 28 that the recent selloff in semiconductor stocks has not cleared enough froth to make them attractive again. He emphasizes that investor positioning remains excessively concentrated on the same side of the market, which could extend the correction. Markham’s concerns, already raised in February 2026, focused on AI infrastructure spending that would outpace actual revenue generated by these technologies. The semiconductor supply chain is also being reshaped by geopolitical forces, including TSMC’s planned US investments and government subsidies for domestic chip production. If the traditional chip trade has not fully unwound, crypto tokens built on top of AI infrastructure are even more vulnerable due to thinner liquidity and wider spreads.
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