Chip Stocks Tumble on Weak Earnings, Economic Concerns, and Regulatory Scrutiny

Chip stocks, particularly Nvidia and Intel, experienced significant declines following a disappointing jobs report and concerns about overinvestment in AI. Intel`s stock plummeted after the company missed earnings expectations and announced cost-cutting measures, including layoffs and a dividend suspension. Nvidia`s stock also fell amid concerns about a potential antitrust probe and skepticism from investors regarding the AI boom. Despite a brief surge earlier in the week driven by positive news from other chipmakers, both Nvidia and the sector as a whole ended the week lower. However, Nvidia`s stock remains significantly up for the year.