Chip stocks sold off July 28 on AI circular financing concerns

Chip stocks dropped on July 28, 2026, as investors scrutinized circular financing in the AI buildout — deals where capital circulates among affiliated parties, potentially inflating reported demand for AI hardware. The Nasdaq fell 0.21% to 24,880.21 while the Dow rose 1.10%, per Reuters. Whether this deepens into a structural reassessment of AI revenue quality remains unclear.