After Democrats won a sweeping victory in the US midterm elections, concerns over tighter regulation of AI data centers, coupled with an uncertain capital expenditure outlook for tech giants, triggered a sharp correction in US tech stocks. Led by semiconductor shares, the PHLX Semiconductor Index plunged 10.46% in the three trading days after the election, from November 4 to 6, while the Nasdaq fell about 4.2%.
Overseas ETFs Rebound From Oversold Levels, Led by Three Categories
As pessimism gradually eased, some overseas equity ETFs staged a strong rebound. According to CMoney statistics, as of November 10, space satellite, technology/semiconductor, and gold resource funds led the market this week, with the top gainer up 17.55%. Analysts noted that some sectors had previously seen deep corrections, attracting bargain-hunting inflows, while AI, semiconductors, and space infrastructure retain long-term growth potential, lifting related ETF prices.
00910 Jumps 17.55% to Top Spot, PCB and 5G Gain Over 10%
Among the top 10 overseas equity ETFs this week, First Financial Space Satellite 00910 rose 17.55% to rank first, CTBC Taiwan-Japan-Korea PCB 009828 rose 11.6% to rank second, and Yuanta Global 5G 00876 rose 10.46% to rank third, all gaining more than 10%. Others, including Mega US Gold 009832, CTBC Japan Semiconductor 00954, and Nomura Rare Earth Key Resources 009821, rose between 8% and 9%, showing funds flowing back into previously battered technology and resource stocks.
First Financial Space Satellite ETF manager Tseng Wan-sheng said ground-based data centers face power supply, environmental constraints, and local political resistance, prompting the market to turn its attention to emerging infrastructure such as space computing and satellite communications and other emerging infrastructure. SpaceX founder Musk has also floated the idea of moving data centers into space, adding new imagination to the sector. 00910 tracks the Solactive Space Satellite Index, covering rocket manufacturing, satellite equipment, communications services, key components, and space transportation. Some index constituents had previously corrected by more than 50%, and improved market sentiment attracted fresh positioning. However, space-based data centers remain at an early stage of development, with technological maturity and commercialization progress yet to be verified, so the industry outlook should not be judged on a short-term rebound alone.
Semiconductor ETFs Recover, Analysts Warn Against Chasing Gains
Semiconductor-related ETFs were also a major driver of this week's rebound. CTBC Japan Semiconductor 00954 rose 9.01%, Taishin Japan Semiconductor 00951 rose 7.29%, and Cathay PHLX Semiconductor 00830 and Mega Intercontinental Semiconductor 00911 rose 7.14% and 6.98%, respectively. Analysts believe advanced processes, chip packaging, and semiconductor equipment remain key areas of global technology competition, but AI data center investment still faces policy uncertainty, and investors should watch the US policy direction, tech giants' capital spending, and semiconductor companies' earnings guidance. Notably, while 009828 rose 11.6% this week, it is still down 29.43% over the past month; 00954 and 00951 are down more than 30% over the past month, indicating the moves remain oversold rebounds. Targets with large short-term gains are more volatile, and investors should monitor fundamentals and valuations and avoid excessive chase-buying.