For most of the past two years, the opposite trade prevailed: investors piled into semiconductor and infrastructure companies on the assumption that Microsoft, Amazon, Alphabet and Meta would keep accelerating spending on the buildout of data centers.

AI chip stocks lost over $1 trillion in market value in July 2026 as custom silicon from OpenAI, Amazon, and Cerebras challenges Nvidia's GPU dominance.

(Bloomberg) -- A selloff in chipmakers dragged down stocks amid concerns over whether massive artificial-intelligence investments will justify lofty valuations, with a resurgence…