AI Stocks Shed $1 Trillion in Week; Selloff Tests Sector Resilience

A global sell-off has erased $1 trillion from AI-related equities, hitting chipmakers and leveraged infrastructure firms, though underlying demand and profits remain robust. The drop appears driven by positioning and valuation concerns rather than fundamentals, but the durability of the correction is uncertain. This matters because AI equities have been a key driver of broader market performance, and sustained weakness could spill into risk sentiment.