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

Asian semiconductor and AI-linked stocks fell sharply, tracking a more than 4 percent drop in the US Philadelphia Semiconductor Index, as investors questioned lofty AI valuations despite strong quarterly earnings from Taiwan Semiconductor Manufacturing Co. (TSMC). Analysts noted that near-perfect execution is already priced into AI companies, leaving limited room for disappointment and raising concerns over whether massive AI infrastructure spending will justify elevated valuations. Markets now await upcoming earnings from major technology firms and chipmakers to confirm whether AI demand remains strong enough to sustain current investment levels.