"We are at the outset of the AI revolution," Huang said, framing last week's $1 trillion-plus wipeout in chip stocks as a near-term positioning event rather than a signal of structural weakness in AI demand.

The carnage was concentrated on June 5, when the sector suffered its worst single session since March 2020. Nvidia alone shed $13.56 per share, or 6.2%, on that day. Two catalysts drove the selling: a May jobs report showing 172,000 new payrolls — more than double analyst expectations — which stoked fears the Federal Reserve could raise rates, and Broadcom's underwhelming AI chip guidance for the prior quarter, which had already seeded doubts about whether lofty AI capital expenditure expectations could be met.

Wells Fargo Chief Equity Strategist Ohsung Kwon echoed Huang's positioning-over-fundamentals thesis in the immediate aftermath of the June 5 selloff. "The semiconductor sector was way overbought. That's why we're seeing the selloff. I don't think it's the end of the semi bull market," Kwon said.

UBS Global Wealth Management CIO Mark Haefele also struck a measured tone Monday, noting that "although tech stocks have come under pressure in recent days amid concerns about whether expectations can be met, business fundamentals remain strong."

Not everyone is so sanguine. Analysts cited by Fortune warned the Nasdaq's slide echoes 1999-style bubble dynamics, with one describing 2026 as looking uncomfortably like that era and questioning whether AI valuations can hold without imminent rate cuts.

Ahead of the open, S&P 500 futures are up 0.9%, and NASDAQ 100 futures are up 1.9%, with NVIDIA, Broadcom, and Micron gaining 2.7%, 3.3%, and 8.3%, respectively. Nvidia's 52-week high stands at $236.54, leaving room to recover even after the partial premarket bounce.