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US chip stocks extend selloff, market value loss seen topping $1 trillion

Philadelphia Semiconductor Index constituents are on track to shed more than $1 trillion in combined market value as concerns over rising interest rates, stretched valuations and the huge cost of AI infrastructure mount. The index fell as much as 3.1% and has lost about 10% over six straight sessions, its longest losing streak since May 2025. Arm Holdings dropped nearly 20%, Applied Materials about 15% and Intel 11%; GlobalFoundries was the only gainer.

Original source

AI take

The selloff is notable less for its size than for its breadth: it hits chip designers and equipment makers alike, while GlobalFoundries is the lone gainer. That suggests the market is repricing the cost side of the AI buildout, not just demand expectations. The open question is whether this becomes a broader de-rating of AI infrastructure exposure or stays contained to semiconductors.

Generated by AI for reference only.

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