AI fatigue drives chip stocks to worst stretch in 16 months

Market: “Market” refers broadly to financial markets, particularly equity markets affected by investor sentiment toward artificial-intelligence spending. In this news, it describes the market-wide shift toward caution as investors question the financing, valuation, and eventual returns of the AI infrastructure buildout. Global risk: The International Monetary Fund has warned that a possible AI-market correction could have global consequences if expected AI investment gains fail to materialize. Semiconductors: The Philadelphia Semiconductor Index was approaching its longest losing streak in about 16 months, while major Asian chip markets also weakened sharply. Investor sentiment: Investors have become more cautious about AI-related spending as concerns grow over financing costs, monetization, and returns on invested capital.