Semiconductor and storage shares extended their selloff during U.S. trading on Aug. 24, while Deutsche Bank questioned the sustainability of the recent technology-led rally. The Philadelphia Semiconductor Index fell more than 4% according to BIT (bit.com) market data and was approximately 4% below its recent high as of that week. Micron Technology fell 7.02%, SanDisk dropped 10.3%, Seagate Technology declined 7.2%, Western Digital lost 7.1%, SK hynix ADR fell 3.4%, Nvidia dropped 2.3%, Intel declined 4.6%, and AMD fell 4%. Separately, SOXL, Direxion’s three-times long semiconductor ETF, attracted nearly $7 billion in net inflows during July and the first two weeks of August, despite falling to $111.16 on Aug. 24, more than 60% below its previous peak of $302. The differing figures reflect separate measures: the PHLX Semiconductor Index’s decline from its recent high and SOXL’s leveraged performance. Deutsche Bank cited valuation concerns, shifting sentiment, potential global supply-chain headwinds, profit-taking and cautious chipmaker outlooks rather than a single catalyst. Bank of America’s August survey showed long semiconductor positioning falling to 53% from 82% the previous month, while Fidelity warned that the industry’s roughly 40-month earnings cycle may be nearing a peak. Goldman Sachs raised its forecasts for global wafer-fabrication equipment spending to $150 billion in 2026, $218 billion in 2027 and $281 billion in 2028, arguing that an AI-driven semiconductor supercycle could continue through 2028; JPMorgan remained bullish after the pullback.