AI Chip Stocks Bounce After Global Rout—But Is the Bubble Starting to Burst?

AI chip stocks rebounded on Friday after a sharp global sell-off, but the recovery did little to resolve concerns about the sustainability of the boom. The article says the central question for investors is whether the fall is a correction in share prices or an early sign that expectations for AI investment have become unrealistic.

Nvidia gained 2.78% to $186.64 after falling 9.3% the day before, while AMD rose to $449.04 after a 17.3% drop; both remained below their October peaks. South Korea’s KOSPI fell 6%, Taiwan’s benchmark lost more than 8% over the week, and the US Tech 100 was still down over 5.5% for the week. The article links investor concerns to possible limits on data-centre construction, high borrowing costs and uncertain returns, while noting the technology’s long-term promise and that large technology companies are investing heavily.