Chip Stocks Slide as AI Funding Fears Rattle US Equities

US semiconductor names led Thursday's equity retreat, with Micron among the hardest hit as three separate catalysts converged. Tesla's lower capital spending target rattled sentiment first, followed by Lam Research's weaker-than-expected forecast, which hit chip-equipment makers directly.

The broader worry weighing on US stocks is structural: the AI buildout increasingly depends on external funding sources rather than pure operating cash flow. That dependency makes the sector more sensitive to any hint of tightening credit conditions or revised capex plans across the supply chain.

Despite the selloff, pullbacks tied to single-stock warnings haven't historically derailed broader indices when underlying earnings momentum holds. Traders are watching whether this proves a sector-specific air pocket or the start of a wider AI-trade unwind.