A $1.3T wipeout grabs headline-To The Moon - Tiger Brokers Online Investing Community - To The Moon

A $1.3T wipeout grabs headlines, but it doesn't automatically mean the AI story is broken. The market had become extremely crowded, valuations were stretched, and stronger-than-expected jobs data reduced hopes for near-term rate cuts. That combination was enough to trigger a sharp repricing.

The key question is whether AI demand is slowing. So far, hyperscaler capex, data centre buildouts, and AI infrastructure spending remain intact. If earnings and spending plans hold up, this may prove to be a valuation reset rather than the start of a fundamental downturn.

As for the SpaceX IPO, capital could rotate temporarily, but long-term liquidity is driven far more by monetary policy and corporate earnings than a single listing.

Personally, I would be far more interested in buying quality names after a 20-30% correction than chasing them at euphoric highs. Panic selling after a large decline has rarely been a winning strategy, but neither is blindly buying every dip. The next few earnings reports will matter more than a single brutal trading day.

For now, I'm watching fundamentals, not headlines. Is this a bear market, or simply the price of admission for the next leg of the AI cycle?

Market Crashes, Price in Rate Hikes? When to Start Picking up Chips?

US chip companies lost roughly $1.3 trillion in market cap in one day. The crash is essentially "crowded AI hardware trade + interest rate repricing + overstretched semiconductor expectations." Friday's non-farm payrolls delivered another blow: 172,000 new jobs added in May, clearly beating expectations, unemployment rate holding at 4.3%, hourly wages up 3.4%yoy. Rate-cut expectations back down. On top of this, the SpaceX IPO will siphon off hundreds of billions in liquidity. With this crash, will you panic and head for the exit, or treat it as a chance to get on board?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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The market had become extremely crowded, valuations were stretched, and stronger-than-expected jobs data reduced hopes for near-term rate cuts. That combination was enough to trigger a sharp repricing.</p>\n<p><br></p>\n<p>The key question is whether AI demand is slowing. So far, hyperscaler capex, data centre buildouts, and AI infrastructure spending remain intact. If earnings and spending plans hold up, this may prove to be a valuation reset rather than the start of a fundamental downturn.</p>\n<p><br></p>\n<p>As for the SpaceX IPO, capital could rotate temporarily, but long-term liquidity is driven far more by monetary policy and corporate earnings than a single listing.</p>\n<p><br></p>\n<p>Personally, I would be far more interested in buying quality names after a 20-30% correction than chasing them at euphoric highs. Panic selling after a large decline has rarely been a winning strategy, but neither is blindly buying every dip. 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As for the SpaceX IPO, capital could rotate temporarily, but long-term liquidity is driven far more by monetary policy and corporate earnings than a single listing. Personally, I would be far more interested in buying quality names after a 20-30% correction than chasing them at euphoric highs. Panic selling after a large decline has rarely been a winning strategy, but neither is blindly buying every dip. The next few earnings reports will matter more than a single brutal trading day. For now, I'm watching fundamentals, not headlines. 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