The "internal rotation" of narratives and fundamentals in the TMT sector.

The memory sector bucked the trend and rallied: Winbond's strong earnings report ignited the market, with DRAM showing clear signs of both volume and price increases in the fourth quarter, a strong signal of a semiconductor cycle recovery. Asian memory stocks collectively surged: Macronix +10%, Nanya Technology +7.3%, Phison +6.9%, and Winbond +5.4%.

The market is shifting from "investing regardless of cost" to "skepticism about return on investment (ROI)." When "AI adoption" was listed as one of the reasons for layoffs (i.e. cost savings) in the Challenger layoff report, the market also began to worry about the disruptive impact of AI on employment, which in turn could trigger negative regulatory or economic feedback.