so, there's this thing called AI (artificial intelligence) and sometimes it can be a little bit like an earthquake. It can make things shake and change really fast! like right now, there's a big change happening in the world of making computer chips. These computer chips are really important because they help computers and phones do all sorts of things.

but there's a big fight happening between some countries about who should be able to make these chips and who should be allowed to use them. right now, the big boss of the United States, which is a really big and powerful country, is thinking about making some new rules that might make it harder for another country, called China, to get these special computer chips.

and because of this big fight and these new rules that might be made, some of the companies that make these computer chips are having a really hard time. Their money is going down and their shares are getting sold for less and less. This is making a lot of people worried and sad because they thought these companies would keep making lots of money. But right now, it looks like they might have to figure out new ways to make money or maybe even change what they are making. Read from source...

The article "AI Earthquake: Semiconductors Suffer Worst Selloff In Years On Stricter US Chip Exports To China" presents a one-sided narrative that relies on poor analysis and flawed assumptions. The story's focus on the Biden administration's potential trade restrictions seems to be driven by political motivations rather than factual evidence. The author, Piero Cingari, fails to provide a comprehensive understanding of the semiconductor market and the underlying factors contributing to the selloff.

Firstly, the article's title suggests a significant event or breakthrough in AI, which is not supported by the content. The narrative's emphasis on the "worst selloff in years" is misleading and lacks proper context. The author provides no data or statistics to support this claim, making it difficult to assess the validity of the statement.

Furthermore, the article's analysis of ASML's potential target status is flawed. The author relies on China's sales growth to ASML as evidence of its importance to the US semiconductor industry. However, the article provides no data or evidence to support this claim, making it difficult to assess the validity of this statement.

Additionally, the author's reliance on the Biden administration's political motivations to restrict chip exports to China is irrational and emotionally driven. The narrative lacks factual evidence to support this claim, making it difficult to assess the validity of this statement.

In summary, the article "AI Earthquake: Semiconductors Suffer Worst Selloff In Years On Stricter US Chip Exports To China" provides a poorly analyzed narrative that relies on flawed assumptions and emotional language. The author fails to provide a comprehensive understanding of the semiconductor market and the underlying factors contributing to the selloff. The narrative's emphasis on the Biden administration's potential trade restrictions is politically motivated and lacks factual evidence.

Bearish

Justification: The semiconductor sector has experienced a significant downturn due to the potential tightening of regulatory restrictions on chip exports to China, as discussed in the Biden administration. As a result, the iShares Semiconductor ETF (SOXX) and VanEck Semiconductor ETF (SMH) plummeted, marking their worst trading session since October 2022. Dutch chipmaker ASML appears to be a primary target of these heightened U.S. chip restrictions.