AI chip stocks slide for eight straight sessions as market recalibrates

Shares of major US chip suppliers have fallen for eight consecutive trading sessions, the longest such decline in 16 years, raising concerns about the AI market bubble. Analysts, however, say it is premature to declare a crash. The selloff was triggered by warnings of potential memory chip overproduction by 2029 and competition from Chinese manufacturers. The iShares Semiconductor ETF (SOXX) has dropped 14% from October highs to $514.71, with Intel losing over 20% of its market value in two weeks. Additional pressures include OpenAI's revenue disclosure falling short of expectations, Broadcom's CEO comparing AI investment to gambling, and rising US inflation potentially increasing borrowing costs. UBS analysts view the trend as a "recalibration" rather than a fundamental shift, noting tech giants still plan nearly $800 billion in capital spending this year.