Kobeissi Letter stated that data shows a clear divergence in AI-themed trading. The 30-day correlation between the largest U.S. capital expenditure companies and the Philadelphia Semiconductor Index (SOX) has approached zero, reaching its lowest level in at least 4.5 years, a significant decline from 0.78 in April and below the 0.60 average since 2022.
AI Trading Divergence Worsens: Top U.S. Capital Spending Firms Near Zero Correlation with SOX
TechFlowShare
Summary
Trading activity in AI-themed stocks has shown increasing divergence, with the top U.S. capital-spending firms nearly uncorrelated to the SOX. The 30-day correlation between these firms and the Philadelphia Semiconductor Index has dropped to a four-and-a-half-year low, near zero. This follows a decline from 0.78 in April and now sits below the 2022 average of 0.60. Trading volume in the sector remains high, but patterns indicate a shift in market focus.
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