# Chip selloff deepens Wall Street losses as doubts grew over AI returns

> Wall Street slumps as AI investment fears trigger chip stock rout.
- Title: Chip selloff deepens Wall Street losses as doubts grew over…
- Summary: Wall Street slumps as AI investment fears trigger chip stock rout. Wall Street losses widen as investors question AI infrastructure returns after CoreWeave…
- Keywords: coreweave, s&p 500, nasdaq 100, ai infrastructure, semiconductor stocks, federal reserve, interest rates, money, business, Chip, selloff, deepens
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/us-stocks/wall-street-guide/chip-selloff-deepens-wall-street-losses-as-doubts-grew-over-ai-returns/articleshow/135001236.cms
- Published: 2026-10-16T17:59:00+00:00
- Read time: 1 min
- Topics: coreweave, s&p 500, nasdaq 100, ai infrastructure, semiconductor stocks, federal reserve, interest rates, money, business
## CoreWeave stock drops
CoreWeave sank 9.5% extending a rout driven by concerns that investment in ai infrastructure had outpaced companies’ ability to generate sufficient returns.

> CoreWeave sank 9.5%, extending a rout driven by concerns that investment in ai infrastructure had outpaced companies’ ability to generate sufficient returns
## Semiconductor stocks fall
Selloff in semiconductor stocks extended on friday weighing on major us indexes as concerns mounted over the outlook for the artificial-intelligence trade.

> Selloff in semiconductor stocks extended on friday weighing on major us indexes as concerns mounted over the outlook for the artificial-intelligence trade
## S&P 500 weakens
Weakness in technology shares weighed on the s&p 500 even as most of its components advanced.

> Weakness in technology shares weighed on the s&p 500 even as most of its components advanced
## Nasdaq 100 declines
The nasdaq 100 dropped 1.8% while an index of major chipmakers declined for an eighth consecutive session, its longest losing streak since 2008.

> The nasdaq 100 dropped 1.8% while an index of major chipmakers declined for an eighth consecutive session, its longest losing streak since 2008
## Investor concerns grow
Fawad Razaqzada of stonex trading and forex.com told bloomberg that the market debate had shifted from the potential size of the ai opportunity to whether the enormous investment required to realise it would ultimately prove…

> Fawad Razaqzada of Stonex Trading and Forex.com told Bloomberg that the market debate had shifted from the potential size of the ai opportunity to whether the enormous investment required to realise it would ultimately prove profitable
## Credit markets react
Signs that these concerns had begun spreading into credit markets added to the pressure.

> Signs that these concerns had begun spreading into credit markets added to the pressure
## Federal Reserve stance
Federal reserve chairman kevin warsh avoided commenting on the monetary-policy outlook or the us economy beyond reaffirming the fed’s commitment to price stability.

> Federal Reserve Chairman Kevin Warsh avoided commenting on the monetary-policy outlook or the us economy beyond reaffirming the fed’s commitment to price stability
## Key takeaway

Wall Street losses widen as investors question AI infrastructure returns after CoreWeave drops 9.5%.