Semiconductor stocks have lost more than $1 trillion (£752 billion) in market value as investors question whether the artificial intelligence boom can deliver returns to justify its enormous costs. The Philadelphia Semiconductor Index fell about 12% over the past week, including a 4.3% drop on 14 October.
Arm shares fell nearly 20%, Applied Materials declined 15% and Intel lost 11%. Broadcom traded 28% below its 52-week high. The sell-off reflects elevated stock valuations, persistent inflation and expectations of higher interest rates, alongside concerns about the funding required to expand AI infrastructure.
