The sharp semiconductor selloff reflects renewed concerns over AI development risks, regulatory uncertainty and the possibility of slower AI infrastructure spending. Trump’s dismissal of calls for slower development reinforces the policy uncertainty surrounding the sector. Meanwhile, cybersecurity’s strong rally suggests investors may be rotating toward AI-related beneficiaries perceived as defensive or less exposed to AI-capex valuations. However, CrowdStrike’s record high after a 13.85% surge could indicate stretched near-term positioning. Overall, the move highlights increasing differentiation within the AI trade rather than a broad rejection of AI growth.