Analysis: Dip buying pushes U.S. stocks higher, chip stocks rebound gathering momentum

Odaily reported that dip buying has entered the market, driving a rebound on Wall Street, with chipmakers moving higher. Investors are betting that the artificial intelligence trade that has fueled this bull market still has further room to run.

UBS's trading desk stated that the sharp sell-off in momentum stocks may be nearing its end, creating an opportunity for investors to rebuild positions in AI and semiconductor stocks. One reason the sector may be bottoming out is that a significant amount of speculative positions have already been unwound. Data from UBS's prime brokerage business shows that hedge funds have reduced their long positions in momentum stocks and semiconductor stocks by approximately 5% of total market capitalization, one of the largest reductions on record.