U.S. chip stocks' decline intensifies, with combined market value potentially evaporating by more than $1 trillion.

As market concerns over rising interest rates, excessive valuations, and the massive costs of AI infrastructure intensify, the total market capitalization of Philadelphia Semiconductor Index constituents is expected to evaporate by more than $1 trillion. The Philadelphia Semiconductor Index fell 3.1% on Wednesday. The index has dropped about 10% over the past six trading sessions, on track for its longest losing streak since May 2025. During this period, more than half of the index's constituents fell at least 10%. Arm Holdings plunged nearly 20%, Applied Materials dropped about 15%, and Intel fell 11%. GlobalFoundries was the only constituent to gain.