GammaLab's AI basket is having a sharply negative session: down 6.8% today, far worse than SPY (-3.2%) and QQQ (-5.3%). That brings the 1-week drop to -10.3% and the 1-month drop to a steep -19.1%, though the basket is still up 12.7% YTD.

The move is being driven by a broad semiconductor and AI-adjacent selloff rather than one isolated name. The proximate trigger was Qualcomm's post-earnings slide (stock down roughly 10%) after cautious fiscal Q1 guidance despite an in-line Q4 print. That single reaction spread across the whole chip complex. AMD is down over 15% intraday, Lam Research is dropping about 13%, Arm Holdings and Sandisk were also hit hard, and semiconductor ETFs are cratering (XSD -11.8%). AI-themed and momentum funds such as AIQ (-6.8%) all sold off together, and the weakness spilled into Asian chip-exposed markets, with Taiwan (EWT) and South Korea ETFs (EWY) both down almost 10%.

The AI data center power, cooling and infrastructure basket (chart above) is in freefall, down 7.2% today with no floor in sight, and the damage extends well beyond today: it's down 15.8% over the past week, 23.4% over the past month, and 24.3% over three months, all badly lagging both benchmarks over those windows.

Adding to the pressure, the broader market itself slipped into a risk-off, short-gamma dynamic: SPX fell below its dealer gamma "flip level" (around 7,661, with spot near 7,590), meaning option dealers are now forced to delta-hedge pro-cyclically (selling into weakness), which can amplify downside moves - read more about this important mechanical flow situation here.

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