Selling expands in chip stocks amid rising concerns over AI circular financing and China’s catch-up

Global semiconductor stocks sold off as reports said China is developing its own advanced chipmaking equipment.

Concerns are growing over AI circular financing between chipmakers and model developers, raising doubts about demand sustainability.

The Philadelphia Semiconductor Index and MSCI global semiconductor gauge stayed weak, while Nvidia, ASML, Intel, AMD, and Sandisk fell.

Investors are rechecking rich valuations, China competition risk, and the durability of the AI investment boom.