Tech rally haunted by ‘palpable fear’ of chip industry weakness

Technology stocks are treading on shaky ground despite this 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 like mobile phones. The Philadelphia semiconductor index is down 11% over the past four weeks, underperforming the 7% drop in the Nasdaq 100, with laggards such as Nvidia Corp. hitting lows for 2022.