These tech stocks got unfairly swept up in last week's selloff, analysts say

What happened

Analysts say the recent selloff in technology shares has unfairly hit some chip and data-center hardware companies. William Blair’s Sebastien Naji cited Silicon Motion’s rising demand for chips that manage data movement and described a gap between some stocks’ prices and business fundamentals; he also sees an attractive risk and reward in Credo Technology.

Confirmed

Global impact / market context

If investors continue selling these shares alongside the broader technology group, companies with rising demand could face lower share prices even when their business prospects remain firm. Conversely, renewed confidence in AI spending and monetization could help prices better reflect demand for their chips and data-center connectivity products.

Analyst inference

The article links the selloff to doubts about whether AI investment can generate revenue, whether companies can fund infrastructure expansion, and higher borrowing costs. The semiconductor ETF fell 17% in October and stood 28% below its June high, showing pressure across the sector.

Confirmed

What to watch

1. Watch whether demand continues to rise for Silicon Motion’s flash-controller chips, which manage data movement between devices such as servers and NAND flash memory. Analyst inference
2. Watch whether Credo’s high-speed connectivity components continue to be used to move data in AI data centers, as the article describes their role. Analyst inference
3. Watch whether concerns about AI revenue, funding infrastructure expansion, and higher borrowing costs persist, since the article identifies these as reasons for weaker technology-share sentiment. Analyst inference

Evidence

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