Semiconductor stocks are seeing a significant downturn in the pre-market session, continuing a period of recent volatility. The negative sentiment is being driven by investor concerns over the sustainability of artificial intelligence investments and the potential for increased regulation and slower data center growth following the midterm elections. Additionally, there are signs of institutional investors reducing leverage and trimming exposure to high-beta sectors like semiconductors as the year-end approaches. This follows a broader selloff in the sector over the past week.