The NAS100 came under pressure after a sharp sell-off in AI-related semiconductor stocks, triggered by Meta's announcement that it plans to commercialize excess AI computing capacity. The news sparked profit-taking across the chip sector, with major names such as Micron, Sandisk, Applied Materials and Lam Research posting steep declines.
Despite the short-term weakness, the broader outlook for the AI industry remains constructive. Recent long-term investment commitments from leading chip manufacturers continue to support demand for semiconductor equipment, suggesting that the current correction reflects sector rotation rather than a deterioration in AI fundamentals. Investors appear to be shifting from memory-chip producers toward companies with stronger long-term revenue visibility.
Key Drivers This Week
• US labor market data and expectations for Fed policy
• Rotation within the AI and semiconductor sector
• Ongoing demand outlook for AI infrastructure spending
Technical Overview
The recent decline pushed the NAS100 back toward the 29,900 area, where the index is testing the middle Bollinger Band on the H4 chart. This zone is likely to determine the market's next directional move.
If buyers successfully defend current levels, the index could resume its broader uptrend with upside targets at 30,350 and 30,700. However, sustained selling pressure would expose support around 29,000, with a deeper correction potentially extending toward 28,720.
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