October was a tough month for the AI trade, and our models lagged as a result. In our view, two forces hit the same names at once: hedge fund de-risking, amplified by crowded positioning, and a shifting narrative around the heavy debt and equity issuance funding the AI buildout. Earnings from a few notable mega-caps added to the pressure. The underlying fundamentals have held up more broadly, while semiconductor valuations now sit well below their average since the AI boom began. We see this as a digestion phase within a multi-year investment cycle, and we remain positive on and are positioned for its next phase.