Chip Stocks That Doubled on AI Hype Now Face a Reckoning on Returns

The Philadelphia Semiconductor Index fell 7.9% on June 23 as investors reassess whether data-centre capex will generate sufficient margins and speed to justify current valuations. Stocks that more than doubled year-to-date led the decline. The selloff reflects not a macro shock but a repricing: the bull case assumed hyperscaler spending would translate quickly into revenue and profit. That assumption is now in question.