AI Euphoria Meets Economic Reality as Chip Stocks Suffer Brutal Selloff

Semiconductor stocks sold off sharply after a hotter-than-expected U.S. inflation report and rising oil prices tied to the Iran conflict.

Qualcomm, Intel, Micron, SanDisk, and other chip names posted steep losses as traders reassessed rich AI-driven valuations.

The selloff also reflected growing doubts that the Federal Reserve will cut rates as quickly as markets had expected.

Investors are treating AI chipmakers as more exposed to macro and geopolitical risks, which could cool the sector’s rally if pressures persist.