Chip Stocks Crash as AI Spending Fears Grip Wall Street

A sharp selloff in chipmaker stocks pulled the broader market lower on Tuesday, as investors worried that massive investments in artificial intelligence may not deliver the profits needed to justify sky-high share prices. Renewed geopolitical tensions added to the gloomy mood. The declines erased recent gains, with the semiconductor sector leading the downturn. Analysts say the market is questioning whether AI spending can keep up with expectations, raising the risk of a correction in tech-heavy indexes.