Investing.com-- The Philadelphia Semiconductor Index posted its longest losing streak since the 2008 global financial crisis on Friday, as concerns over artificial intelligence spending, rising financing costs and technology valuations triggered a broad selloff in chip stocks.
The semiconductor index fell 3.83% to 11,137.29, extending its decline to eight consecutive sessions, its longest such streak since October 2008. It has lost 16% since its last advance on October 6.
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All 30 constituents of the index fell on Friday, with Broadcom (NASDAQ:AVGO), Micron Technology (NASDAQ:MU), Advanced Micro Devices (NASDAQ:AMD), Intel (NASDAQ:INTC), Lam Research (NASDAQ:LRCX) and KLA (NASDAQ:KLAC) among the stocks dropping around 5%. Arm Holdings (NASDAQ:ARM) slid about 7%.
CoreWeave (NASDAQ:CRWV) shares slumped 12% on Friday, bringing their five-session loss to about 25%, while the yields on its bonds surged above 15%, well into distress territory.
The selloff reflects growing investor concern over the sustainability of the AI investment boom, particularly the debt financing required to build data centres and expand computing capacity.
Hotter-than-expected U.S. inflation has added to the pressure by raising concerns that interest rates could remain elevated, increasing the cost of capital for companies investing heavily in AI infrastructure.
The decline also dragged down broader U.S. equity benchmarks on Friday, with the Nasdaq Composite falling 2.1% and the S&P 500 losing 1.1%.
The Philadelphia Semiconductor Index had surged more than 60% in 2026 through early October, buoyed by insatiable demand for AI chips and data-center infrastructure.
Cracks began appearing in June, widening sharply this week as debt-financing concerns around AI cloud companies like CoreWeave — which carries roughly $50 billion in debt — collided with hotter-than-expected US inflation data and reports that China's CXMT had made progress on advanced memory chip architecture.
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