Semiconductor Stocks Just Had Their Worst Day in Years. Is the AI Chip Boom Cracking, or Is This a Buying Opportunity?

Semiconductor stocks experienced a dramatic 10% decline on Friday, with the iShares Semiconductor ETF falling to around $540. The sell-off was triggered by Broadcom's softer-than-expected guidance despite record results, combined with a strong jobs report that raised interest rate concerns. While the AI boom shows no signs of slowing, the steep pullback reflects profit-taking after an extraordinary year-long rally rather than fundamental weakness in the sector.