A global rout in semiconductor and other artificial intelligence stocks intensified Friday as investors questioned whether AI spending can justify exorbitant valuations while pondering what a resurgence in oil prices means for inflation and interest rates.
Memory chip stocks were among the biggest decliners Friday. Shares of Taiwan’s TSMC 2330 shed 7% despite second-quarter earnings released Thursday that analysts deemed strong, while Europe’s BE Semiconductors BESI and STMicroelectronics STMPA both lost more than 5%. In the US market, Micron Technology MU, SanDisk SNDK, and Intel ITNC were all seen sharply lower.