A key index of chip manufacturers fell 7% in the session, marking a sharp reversal for a sector that had more than doubled its value since the lows triggered by the war.
The decline underscores growing investor caution regarding the sustainability of the artificial intelligence boom.
US equity markets closed the week with sharp losses, driven by a renewed wave of selling in artificial intelligence and semiconductor stocks.
The decline reflects growing investor anxiety that the multi-year cycle of massive capital expenditure in AI infrastructure may be reaching a point of diminishing returns.
The selloff has intensified concerns about valuation risks in technology-heavy indices.
While some analysts argue that the correction could ultimately strengthen the bull market by purging excess speculation, the immediate pressure on semiconductor names has broadened to affect wider market sentiment.
Trading volumes have surged as investors reassess exposure to high-multiple growth stocks.
Market participants are now closely monitoring whether the selling pressure will spill over into other growth sectors or remain contained within the technology complex.