Franklin Templeton Bullish on AI Infrastructure, Calls Semiconductor Selloff a Healthy Correction

As generative artificial intelligence surges worldwide, the buildout of and investment in AI infrastructure have become a major focus for technology markets. Franklin Templeton says the AI-driven capital spending cycle is expected to continue through at least 2027 and potentially 2028. Companies are already seeing positive returns from investments in AI equipment, creating strong fundamentals that continue to support a bull market in technology and semiconductor stocks.

A Franklin Templeton investment strategist said on July 16, 2026, that the recent sharp volatility in global semiconductor and chip stocks was not a structural warning about industry fundamentals, but a healthy price-discovery correction. The strategist said the short-term adjustment would help flush out market froth. With companies continuing to expand investment in AI infrastructure, the semiconductor industry's long-term bull trend remains intact, giving investors little reason to panic.