Tech and chip makers lose $1 trillion in massive AI sell-off

Chip stocks crater as investor confidence in AI trade takes a sharp turn

Nvidia dropped 5% July 27 on $350B OpenAI chip-deal reports; ASML fell 8.5% as China advances domestic chip production. These dynamics narrow Nvidia and ASML's competitive moat, undermining the capex growth thesis that has anchored AI infrastructure investment valuations.