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Tech Rally Haunted by ‘Palpable Fear’ of Chip Industry Weakness

  • Fears of a semiconductor downturn have pummeled chip stocks
  • Biden plans to broaden curbs on chip exports to China: report
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Technology stocks are treading on shaky ground despite last week’s rally as chipmakers signal more trouble may be ahead in an industry notorious for its booms and busts.

Semiconductor shares have been tumbling amid a series of corporate warnings about slowing demand for chips that are used in an array of electronic devices such as mobile phones. The Philadelphia semiconductor index has slumped 11% over the past four weeks, underperforming the 7% decline in the Nasdaq 100, with laggards such as Nvidia Corp. hitting lows for 2022.