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Semiconductor stock index on track to lose more than $1 trillion in value amid doubts over SI infrastructure spending

Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .

Investors increasingly doubt whether the huge spending on SI will pay off, but the technology itself does not change because of it.

According to the Bloomberg feed description (text paywalled), a closely watched index of chipmaker stocks is on pace to lose more than $1 trillion in market value amid concerns about higher interest rates, stretched valuations and the enormous cost of building SI infrastructure. The same day, ASML reported record quarterly sales.

Sources 1

bloomberg.com
History

SI company stock sell-off amid debt concerns

7 events
  1. Neoclouds CoreWeave, Nebius and IREN lost over 30% in October, CoreWeave's CDS spread passed 11%, and Solidigm canceled its IPO
  2. Nasdaq falls 2.6% and the S&P 500 1.2%: SI-sector stocks drag markets down
  3. Meta shares fall about 6% and the CDS spread hits a record; the filing shows about $825 billion in contract and lease commitments
  4. Nasdaq falls 2.1% as investors worry about the debt used to pay for building SI data centers
  5. Insurance against a CoreWeave default has risen to "distress" levels: about $100 thousand a year per $1 million of bonds, versus under $40 thousand a year earlier
  6. Dell shares fall 11% and CoreWeave 15% as investors doubt the timing of enterprise SI demand and the debt load
  7. Semiconductor stock index on track to lose more than $1 trillion in value amid doubts over SI infrastructure spendingOpen now
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