CNA Explains: Why are AI stocks tumbling when demand is still booming?

SINGAPORE: Technology giants are continuing to ramp up spending on artificial intelligence. Demand for advanced chips remains strong. And the world’s largest contract chipmaker has just reported another record profit. Yet the semiconductor stocks at the heart of the AI boom are tumbling. The Philadelphia Semiconductor Index fell for eight straight sessions through Friday (Oct 16), shedding about 16 per cent over that period in its longest losing streak since the 2008 global financial crisis. Also known as SOX, the index tracks 30 of the world’s biggest semiconductor companies listed in the United States, including Nvidia and Advanced Micro Devices,…