What Rate-Cut Signals Mean for AI Semiconductor Stocks

These days, as expectations for rate cuts grow, growth stocks are starting to move again. AI infrastructure in particular is highly rate-sensitive, so it reacts quickly even to just a signal.

The caveat is that the interpretation depends entirely on whether the rate cut is due to "an economic slowdown" or "stabilizing inflation." In the former case, the AI capex cycle could also turn down.

Personally, I’m leaning a bit more toward semiconductor equipment and power infrastructure. Even if the model performance race ends, power will still be needed.