The Philadelphia Semiconductor Index fell for an eighth straight session on Friday, its longest losing streak since October 2008. Concerns over AI spending, financing costs and technology valuations drove the selloff, which also pulled down the Nasdaq Composite and the S&P 500.
The Philadelphia Semiconductor Index fell 3.83% to 11,137.29 on Friday, extending its decline to eight consecutive sessions. The index has lost 16% since its last advance on October 6.
Every chip stock in the index drops
All 30 constituents of the index fell on Friday. Broadcom, Micron Technology, Advanced Micro Devices, Intel, Lam Research and KLA were among the stocks dropping around 5%, while Arm Holdings slid about 7%.
CoreWeave shares slumped 12% on Friday, bringing their five-session loss to about 25%. Yields on its bonds surged above 15%, well into distress territory.
AI debt and inflation weigh on the sector
The selloff reflects growing investor concern over the sustainability of the AI investment boom, particularly the debt financing required to build data centres and expand computing capacity. Hotter-than-expected U.S. inflation has added to the pressure by raising concerns that interest rates could remain elevated, which would increase the cost of capital for companies investing heavily in AI infrastructure.
Cracks began appearing in June, widening sharply this week as debt-financing concerns around AI cloud companies like CoreWeave collided with the inflation data and reports that China's CXMT had made progress on advanced memory chip architecture. CoreWeave carries roughly $50 billion in debt.
Broader benchmarks follow chips lower
The decline also dragged down U.S. equity benchmarks, with the Nasdaq Composite falling 2.1% and the S&P 500 losing 1.1%.
The chip index had surged more than 60% in 2026 through early October, buoyed by demand for AI chips and data-center infrastructure.
Source: Investing.com
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