Markets sink on global selloff in chip stocks

A global selloff in chip stocks caused markets to decline, as TSMC's record earnings and a $100 billion investment in US chip fabs failed to alleviate concerns about the sustainability of AI spending. Investors remain wary of 'stretched valuations' and expect 'perfection' from the AI sector, with analysts warning of 'meaningful cracks' in chip stocks requiring a rebound to avoid further declines.