$iShares Semiconductor ETF(SOXX.US)Currently there is lots of fear in the AI related sector since US Democrats took over…

$iShares Semiconductor ETF(SOXX.US)

Currently there is lots of fear in the AI related sector since US Democrats took over the Senate and House. This caused widespread selling and hedge fund deleveraging. There was news on force selling by hedge funds following heavy margin accumulation earlier in the year. The political and regulatory fear remains after the US election. However, my view is that the probability of major legislation changes is low. Case of point for Texas (which has the most AI Data Centers in US) is that neither party has absolute control. Democrats can propose the budget and block policies via the House and Governor's veto, but Republicans who control the Senate in Texas have the power to block policies from reaching the Governor's desk. Also, the Democrats will not want to lose the lucrative revenue, jobs growth, tax income that data centers will bring to their states. Anyway, I believe whatever happens in the future will still benefit long term investors who buy into high quality companies or ETF while waiting for recovery in stock prices.