European stocks fall as global AI sell-off deepens after record US chip rout

European stocks fell Friday as a global sell-off in AI and chip shares spread, following the worst day for US chip stocks since 2020. The Stoxx Europe 600 dropped 1.2% at the open, with France's CAC 40 and London's FTSE 100 both down 1.4%. The rout began Thursday when the Philadelphia Semiconductor Index plunged 12.2%, erasing a record $2.9 trillion in S&P 500 market value. Investors are weighing whether Democrats' midterm election wins could lead to stricter rules on AI data centres, with about 40% of planned US capacity facing potential pauses. Asian markets also tumbled, with Japan's Nikkei 225 down 6% and South Korea's Kospi falling 6%. Concerns over AI investment returns and higher borrowing costs are fueling the sell-off, while Nvidia CEO Jensen Huang lost $15.1 billion in net worth.