Chip slump erases $1.3t in stock market value - The Business Standard

The semiconductor industry recently experienced a sharp correction, with US-traded chipmakers plummeting on Friday, wiping out approximately $1.3 trillion in market value. The sell-off was driven prim... Read original →

This chip stock crash stems from the convergence of inflated AI valuations and tightening liquidity. Technically, sub-3nm nodes' heavy reliance on EUV lithography makes TSMC (Taiwan, China) and Samsung capacity bottlenecks—any capex slowdown will delay AI hardware innovation. Compliance-wise, escalating U.S. export controls force Micron and Broadcom to reconfigure supply chains, raising operational costs by 15–20%. Strategically, NVIDIA’s dip may accelerate its shift toward custom AI ASICs, while AMD could seize data center share with cost-effective alternatives. Over the next 12–24 months, a brutal shakeout looms: firms lacking real AI deployment will vanish, while those mastering advanced packaging and chiplet architectures will lead the next cycle. SpaceX’s $1.75T IPO signals capital is pivoting from pure-play semiconductors to integrated hard-tech narratives—single-technology hype can no longer justify premium valuations.