Global semiconductors, after more than a year of carrying the stock market on their shoulders, are in a volatile free fall.
The rout in these stocks sparked fears of an AI bubble that, should it burst, could send the tech industry, and perhaps the entire market, into turmoil. Over the past month, major semiconductor stocks have taken a beating in the stock market. Nvidia fell 14%; Advanced Micro Devices (AMD) 19%; TSMC, which is facing its own set of geopolitical complications, dropped 15%; and Arm, the British manufacturer of chips, dropped 31%—including 24% since the start of this week. Intel’s stock saw its worst day in 50 years when the stock fell 27% on Friday, on news it was suspending its dividend and laying off 15,000 employees.
