Since October 6, thematic baskets—covering areas such as memory, AI semiconductors, data centers, and optical networks—have fallen by between 20% and 35%, according to Bloomberg data.

These are precisely the assets that had seen the largest gains since the launch of ChatGPT in November 2022.

The memory basket had surged by nearly 700%, while the AI semiconductor basket had climbed more than 500%.

Meanwhile, the Nasdaq has fallen by nearly 10%, the S&P 500 by a much smaller margin, and defensive sectors—such as healthcare and food—have risen by more than 10%.

The broader index masks this correction.

In my view, this rotation aligns with the consensus on AI-related capital expenditure (capex), which suggests that investment growth will effectively drop to zero from 2028 onwards.