Chip Stocks Sell Off as AI Infrastructure Costs Spook Investors

Chip stocks sold off on Friday as investors grew increasingly anxious about the rising cost of building out artificial intelligence infrastructure.

Intel shed about 3%, Sandisk fell 10%, Arm lost nearly 4% and Marvell dropped 5%. Even Micron, which had surged a day earlier on record earnings, fell more than 5%.

The pullback reflects a broader unease. The “Magnificent Seven” megacaps, along with Broadcom and Oracle, have lost roughly $2.7 trillion in market value during June, according to one analysis, as investors scrutinise the enormous spending behind the AI build-out.

Some commentators have begun questioning whether the AI trade has become a bubble, even as demand for the chips powering it continues to climb — deepening a divide between memory chipmakers and the hyperscalers footing the bill.