Why high-flying chip stocks are suddenly looking vulnerable
Michael M. Santiago/Getty Images High-flying chip stocks have been battered in recent trading sessions. A blurry rate outlook and profit-taking after months of gains are weighing on the space. An investor said that structural forces in the market have also pushed chips lower. The AI picks-and-shovels trade has stumbled in the last few days after a long stretch of record-setting gains, and the market's hottest stocks are suddenly looking vulnerable. Chip shares have plunged in three of the last four trading sessions, with losses on Tuesday and Wednesday' extending last Friday's steep decline . Volatility kicked off last Thursday after after Broadcom reported disappointing earnings, but really picked steam on Friday when a hot jobs report officially dashed all hope for a rate cut in 2026. The VanEck Semiconductor ETF is down 10% in the last five days, and major names from GPU makers to memory chip firms are taking a beating. Here are some the biggest declines since the clos...