Nasdaq 100 lags as AI and chip stocks face valuation reset amid rising volatility.

The Nasdaq 100 has underperformed other major US indices this week, dropping 2.7% due to a rotation away from high-valued AI and semiconductor stocks. Concerns over heavy capital spending, delayed AI profits, and volatility in chip stocks have shifted investor focus from growth to sustainable earnings. The semiconductor sector's weakening technical signals raise the risk of a broader market correction, with the Nasdaq 100 nearing a key support level that could trigger a multi-week decline if broken.