Nvidia, AMD, Broadcom Stocks Just Hit A Wall After A Wild Month‑Long Run

The first real crack in the AI trade is showing up—right where it should. In pre-market trading, Nvidia Corp (NASDAQ:NVDA), Advanced Micro Devices, Inc (NASDAQ:AMD), Broadcom Inc. (NASDAQ:AVGO) and Marvell Technology, Inc. (NASDAQ:MRVL) were all in the red, extending a pullback that began after weeks of near uninterrupted gains.

The move isn't tied to a single headline. Instead, it's the kind of broad, synchronized selling that typically follows an overstretched rally.

The Chart That Explains Everything

To understand the move, zoom out.

The semiconductor trade—tracked by the iShares PHLX SOX Semiconductor Sector Index Fund (NASDAQ:SOXX)—has surged roughly 45–50% since late March.

The chart tells a clear story: a steep, almost vertical climb with barely any pauses along the way.

Chart created using Benzinga Pro

That kind of move tends to push momentum indicators like RSI (relative strength index) deep into overbought territory. The SOXX is currently trading at an RSI of 80.97 – deeply overbought.

It also creates crowded positioning, where too many traders are leaning the same way at the same time. And that's when the trend usually stalls.

Pre-Market Weakness Signals A Reset

The pre-market declines across semis aren't random—they're the first signs of that reset.

Higher-beta names like AMD and Marvell Technology are seeing sharper pressure, while leaders like Nvidia are holding relatively better. That's a classic pattern when momentum starts to unwind.

Importantly, there's no broad negative catalyst driving this move. No earnings shock, no policy change, no sudden drop in AI demand.

Nothing Broke—Positioning Did

What changed is positioning.

After a near 50% run in a month, traders are simply taking profits and stepping back. The market isn't rejecting the AI story—it's recalibrating after getting ahead of itself.

For now, this looks like a technical cooldown rather than a structural reversal. But after a rally this sharp, even a pause can feel like hitting a wall.

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