Is the AI stock boom losing steam after the latest chip selloff?

Asian technology stocks tumbled on Friday after a sharp overnight selloff in U.S. semiconductor shares rattled investor confidence in the artificial intelligence trade. The weakness spread across major Asian markets, dragging down AI-linked companies despite no major deterioration in industry fundamentals. (Sources: CNBC, Reuters)

The group booked a 278.6 billion yen gain on its investment in chipmaker Intel, which is led by former SoftBank board member Lip-Bu Tan.

The Asian selloff followed a broad decline in U.S. semiconductor stocks, where the Philadelphia Semiconductor Index dropped more than 4%. Investors questioned lofty AI-related valuations, even after strong quarterly earnings from Taiwan Semiconductor Manufacturing Co. (TSMC).

Analysts said the market has priced in near-perfect execution for AI companies, leaving little room for disappointment. The selloff reflects growing caution over whether massive AI infrastructure spending can continue delivering returns that justify elevated stock valuations.

Despite the sharp correction, many investors continue to view artificial intelligence as a long-term growth theme. Markets are now looking ahead to upcoming earnings from major technology companies and chipmakers for fresh evidence that AI demand remains strong enough to support current investment levels.