DAX set for weaker start as Nvidia and Jackson Hole take focus - CMC Markets

The DAX is expected to open weaker as investors weigh geopolitical developments, US tariffs, and profit-taking in the AI sector. While global risk appetite and strong semiconductor and AI stocks conti... Read original →

The semiconductor and AI sectors are at a critical juncture. NVIDIA's earnings expectations are sparking doubts about the sustainability of the AI boom, while intensified U.S. tech restrictions are pressuring upstream chip design and manufacturing firms. European markets opened weaker amid geopolitical concerns and speculation over Federal Reserve policy. Alibaba’s capital increase highlights surging AI investment needs, but funding strain is constraining industry expansion. Profit-taking in tech stocks and narrowing market breadth suggest weakening short-term momentum. If U.S. inflation data remains elevated, companies’ ability to pass on costs will be tested, further pressuring semiconductor margins. Over the next 12 to 24 months, global supply chain reshoring and localization trends will accelerate, with intensified competition between Taiwan, China and the U.S. in AI chip development, making technological self-reliance a defining factor.