Chip Selloff Dents Markets as AI Rally Falters, $1.3 Trillion Vanishes
U.S.-traded chipmakers tumbled on Friday, wiping about $1.3 trillion from market value as AI-focused giants like Nvidia, Micron and AMD led losses after Broadcom's weak results; the PHLX chip index fell about 10%, dragging the broader market with the S&P 500 down around 2.6% as investors weighed higher rates and ongoing concerns about pricey tech stocks amid the AI hype.