Semiconductor Stocks Slide on AI Spending Concerns as CoreWeave Faces Debt Scrutiny and Apple Prepares China AI Launch
A broad selloff hit semiconductor and artificial intelligence infrastructure stocks this week, driven by anxieties over high valuations, rising financing costs, and persistent inflation. The iShares Semiconductor ETF (SOXX) dropped 10.2% through Thursday, while Intel Corporation (INTC) and Micron Technology (MU) each fell over 9%. CoreWeave, Inc. (CRWV) experienced sharp volatility following concerns over its debt load, while Apple Inc. (AAPL) secured regulatory approval to roll out its AI platform in mainland China later this year.
The market drop reflects growing investor caution around the heavy capital expenditures required to build AI capacity. CoreWeave debt fell below 80 cents on the dollar earlier in the week, signaling potential stress for neocloud operators, while valuation expectations for Anthropic's expected IPO scaled back to $1.5 trillion from $2 trillion. However, fundamental demand remains intact, as Taiwan Semiconductor Manufacturing Co. (TSMC) projected a 51% revenue increase for the current quarter and ASML Holding (ASML) raised its 2026 sales forecast.
Investors will focus on upcoming earnings reports from major hyperscale cloud providers to evaluate whether enterprise AI spending remains robust. Market participants will also closely monitor Apple's planned December release of Apple Intelligence in China as part of an iOS update, as well as broader bond price stability across debt-financed tech firms.
Key points
- The iShares Semiconductor ETF fell 10.2% during the week through Thursday as valuation and inflation fears weighed on chipmakers.
- CoreWeave, Inc. (CRWV) saw its weekly decline reach 15% after its 2032 unsecured debt dipped below 80 cents on the dollar before stabilizing.
- Apple Inc. (AAPL) plans to launch Apple Intelligence in mainland China in December following regulatory approval from Beijing.
- Taiwan Semiconductor Manufacturing Co. (TSMC) forecasted a 51% quarterly revenue increase, while ASML Holding (ASML) raised its 2026 sales target.
- Expected valuation targets for Anthropic's upcoming initial public offering lowered to $1.5 trillion from $2 trillion due to rising costs.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
Why did chip stocks fall despite strong TSMC and ASML earnings?
Chip stocks declined due to broader concerns over high valuations, rising AI infrastructure financing costs, plunging bond prices for neocloud companies, and higher-than-expected inflation data.
When will Apple Intelligence launch in China?
Apple plans to release its Apple Intelligence platform in mainland China in December as part of the iOS 27.3 update, though the launch will initially exclude the Siri AI assistant.
Why are CoreWeave debt levels drawing investor concern?
Investor scrutiny intensified after CoreWeave unsecured debt due in 2032 dropped below 80 cents on the dollar, signaling potential financial strain amid its rapid infrastructure expansion.