U.S. stocks rebounded on Nov. 9, clawing back some of the previous week’s losses as semiconductor gains, dip buying and lower oil prices lifted the major indexes: the Nasdaq rose 2.74% to 25,253, the S&P 500 gained 2.35% to 7,549.94 and the Dow advanced 2.15% to 52,390.

Chip and hardware shares led the recovery as investors reconsidered whether political opposition would slow AI data-center construction; Allegro MicroSystems rose 3.6%, IPG Photonics 3.5%, Lattice Semiconductor 5.9%, Entegris 2.9% and Broadcom 3.4%.

The rebound comes amid a broader reassessment of AI infrastructure spending, with Invesco strategist Brian Levitt describing the downturn as a correction in the buildout—not the end of the AI investment theme—and suggesting a steadier construction pace could benefit the industry.

Morgan Stanley said the semiconductor selloff may have overstated the impact of policy and approval concerns: delayed projects could push back chip orders and revenue without erasing long-term AI demand, though investors should avoid companies whose valuations already assume strong growth.

The risks are not evenly distributed: smaller AI infrastructure developers face debt burdens and possible regulatory delays that could complicate financing, while neocloud companies have been sold off despite differences in their balance sheets and customer demand.

Beckers sees highly leveraged CoreWeave as more exposed to rising borrowing costs than Iren, which has financed many data centers without debt; he also points to Iren’s five-gigawatt near-term capacity pipeline, higher prices for new capacity and customer prepayments as signs of financing flexibility and demand.

The pullback has also reached Asian markets, where suppliers in South Korea, Japan and Taiwan are reconsidering capacity expansion as U.S. technology companies review spending; inventory corrections could continue into the middle of the next fiscal year.

Morgan Stanley projects U.S. data-center capacity additions will decline about 4% year over year in 2028 before rebounding roughly 38% in 2029, while keeping its forecast for major cloud and technology companies’ combined capital spending at about $1.6 trillion in 2027 and $1.8 trillion in 2028.

Investors are watching whether hyperscalers maintain spending, construction restrictions spread and shortages become excess capacity; Morgan Stanley sees potential for gains to broaden from infrastructure into software and AI applications as commercialization advances.

Aberdeen Investments’ Pruksa Iamthongthong expects near-term volatility if U.S. data-center projects are delayed, but says AI and computing demand remains strong, capacity can shift geographically and technology corrections may create opportunities in Asia and for active investors.

Near-term catalysts include CoreWeave’s earnings, Nvidia’s report on Nov. 17, Dell Technologies’ results on Nov. 24 and next week’s U.S. CPI report; uncertainty also remains over whether Anthropic can begin its IPO roadshow as planned and list within November.

Cramer warned that the AI selloff could have further to run but called it an orderly correction rather than another dot-com crash, noting that many affected companies generate real revenue and profits; he urged investors, especially retirees, to keep cash available rather than risk selling during a downturn.