CHIP STOCKS RETREAT AS AI RALLY COOLS

Chip stocks broadly declined after an extended rally that had broadened beyond Nvidia to lift the entire sector to new peaks. Qualcomm's 11.46% drop led declines, while Intel fell 6.82%, SanDisk dropped 6%, and Micron slipped 3.61%. The pullback marks a correction in a trade that had expanded the AI narrative across multiple chipmakers in recent weeks. The rally had pushed valuations higher across the semiconductor space as investors bet on sustained demand for AI infrastructure and chip production. Meanwhile, AI chip startup Tenstorrent is drawing early acquisition interest from major players including Intel and Qualcomm, signaling continued competition to challenge Nvidia's dominance in the AI chip market. The startup's attention from established chipmakers reflects efforts to acquire specialized AI capabilities amid intensifying competition in the sector.