Is the $1.3T AI chip pullback a healthy multi-year breather or a signal to take profit?

The global semiconductor trade just hit its first massive bump, with the top 20 chip stocks shedding roughly $1.3 trillion in market value over a brutal stretch.

Despite the pullback, the Philly Semiconductor Index (SOX) is still up drastically over the past 12 months, highlighting just how fast hardware multiples ran up.

Key highlights from the selloff:

• Nvidia (NVDA): Dropped ~$238B in market cap off recent highs.
• Memory Giants Hit Hardest: SK Hynix lost $176B, Samsung fell $173B, and Micron dropped $113B.
• Foundry/Design Pressure: TSMC gave up ~$119B and AMD lost ~$110B.
• Earnings Bar Is Sky-High: SK Hynix slid nearly 10% in Seoul post-earnings despite posting record quarterly profit and revenue, simply because it narrowly missed aggressive analyst targets.

The Two Sides:

• The Bulls: Institutional managers (like Aberdeen) view this as standard deleveraging and "taking the froth out" of stretched multiples, creating a much better risk/reward entry point for high-quality names.
• The Bears: Analysts cite concerns around hyperscaler Capex returns, rising Chinese competition, and macro tech sentiment indicating near-term AI infrastructure spending is due for a pause.

My question for you all:

Are you using this 15–20% dip in names like $TSM, $NVDA, or$MU to accumulate more shares, or do you think hardware valuations still have further to fall before bottoming out?