Chip Stocks Lost $2 Trillion in 8 Days, Testing Investor Faith in the AI Boom

Chip stocks erased about $2 trillion over eight straight sessions, their longest losing streak since 2008, as yields above 5% and doubts about artificial intelligence spending weighed on the group. The Philadelphia Semiconductor Index, a benchmark of US-listed chipmakers, fell more than 11% last week before bouncing Monday. An above-forecast inflation reading raised the odds of Federal Reserve rate hikes, and Fed meeting minutes showed most officials saw another 2026 hike as likely appropriate; the 10-year Treasury yield stood at 5.10% at Monday’s open. A CNBC Investment Committee panel split on whether the rebound was a buying chance or a pause, and flagged upcoming AI-related earnings as the next test.