For me, this looks like more than a short-term rotation. With the 10-year Treasury above 5%, investors are becoming more selective toward companies with heavy capex and distant cash flows. That explains why semiconductors can face pressure even while long-term AI demand remains strong.

I also think software deserves more attention as AI monetization becomes easier to measure. Companies like PLTR and MSFT can potentially turn AI into higher revenue and free cash flow without the same infrastructure burden. The key question is shifting from whether AI makes money to which part of the AI stack captures the profits.

Personally, I would not simply sell SOXX and buy IGV after one sharp move. I still believe chips are essential to AI, so I prefer accumulating quality names gradually while watching rates, credit spreads, and earnings. For me, cash flow will increasingly separate the winners from the stories.