Chip stocks tumble as AI rally loses steam

A broad decline swept through semiconductor and AI-related stocks on Friday, marking a reversal for shares that had benefited from enthusiasm around artificial intelligence spending. Advanced Micro Devices fell 2.1%, while rival Intel dropped 3%. Applied Materials, which supplies equipment used by chip manufacturers, declined 4.7%, and materials supplier Corning fell 3%. The article characterizes the move as part of a wider selloff in chip makers and AI stocks, though it does not detail the specific catalysts behind the decline. The losses suggest that investor appetite for technology stocks, which had sustained a multi-month rally, may be cooling.

The semiconductor sector faced significant selling pressure on Friday, with multiple chip makers and materials suppliers all posting declines. Applied Materials, a key equipment supplier to chip manufacturers, led the losses at 4.7%, suggesting weakness that could ripple across the semiconductor supply chain. The broader pattern — involving both chip designers like AMD and Intel as well as materials companies like Corning — points to a pullback in the technology and AI sectors that have driven equity markets higher. The article frames this as part of a "worsening selloff," indicating the pressure extended beyond individual names.

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