AI fatigue is gripping the market and driving chip stocks toward their worst stretch in 16 months

The market's appetite for artificial intelligence appears to be shifting from enthusiasm to scrutiny. Semiconductor shares are on track for their worst stretch in roughly 16 months, a move that suggests investors are reassessing how quickly hefty AI investments will translate into returns. The pullback comes as anticipation builds for Anthropic's investor day, an event that may offer fresh detail on the company's strategy and spending plans.

For much of the past two years, chipmakers were the clearest beneficiaries of the AI buildout, as demand for the processors that power large models lifted revenues and valuations alike. The current softness points to a subtler dynamic: investors are no longer rewarding AI exposure unconditionally, and are instead weighing timelines, capital intensity, and profitability.

What to watch from here is whether the weakness reflects a temporary pause or a broader repricing of AI-related expectations. Commentary from Anthropic's investor day, along with upcoming earnings and capex guidance from major chip and cloud companies, should help clarify whether spending plans remain intact or are being trimmed.