AI wrecks tech

Friday 6 February 2026

Charts from TME. Semiconductors are threatening to follow software down as the NDX washout gathers momentum.

To call the semis trade crowded doesn’t quite say it.

Software doom is at hand. Overnight, Goldman declared the sector the new “Newspapers”. “Historical episodes of major disruption risk suggest that share price stabilization will require stability in the earnings outlook. The multi-year decline of newspaper stocks ended only as earnings estimates bottomed.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.