AI Tax Proposal Drains $300B from Chip Sector, Top Stocks Slide
Proposed AI-related tax measures erased roughly $300 billion from global semiconductor equities in a single session, driving the Philadelphia Semiconductor Index down about 5% on May 12. Major names including Samsung and Nvidia plunged, extending losses across chip manufacturers like Micron and Western Digital.
1. Sector Market Cap Loss
The AI-related tax scare triggered a sharp selloff in semiconductor stocks on May 12, erasing about $300 billion in global market cap as investors recalibrated growth forecasts for artificial intelligence hardware.
2. Leading Chip Stock Declines
Major companies saw steep declines, with Samsung Electronics and Nvidia shares falling in the mid-single-digit percentage range, while smaller memory and storage names also extended losses amid heightened sector volatility.
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