Chip Stocks Set to Erase $1 Trillion in Value as Rout Deepens

A closely watched semiconductor index is on pace to wipe out more than $1 trillion in market value. Higher interest rates, stretched valuations and the massive cost of AI infrastructure buildout are driving the selloff.

• Semiconductor index on track to lose over $1 trillion in value
• Higher rates and stretched valuations add pressure
• Investors worry about soaring AI infrastructure costs