Chip stocks were a safe AI play. Now they’ve turned into the market’s pain trade.

Semiconductor stocks have declined following reports of slower-than-expected progress in artificial intelligence development. Major chip manufacturers including Nvidia, Intel, and AMD saw share prices fall in recent trading sessions as investors reassessed demand forecasts for AI-related processors. Analyst forecasts for chip industry growth in 2026 were lowered by several major investment firms citing extended timelines for new AI model deployments.

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