Chip stocks continued their decline, with the Philadelphia Semiconductor Index falling 10.1% intraday. The index was dragged down by US election policies and earnings reports from Arm and Qualcomm. Election results showed support for policies restricting the construction of new AI data centers, prompting Wall Street analysts to lower target prices for several AI infrastructure-related chip companies. Arm reported second-quarter revenue, profit, and outlook that all exceeded expectations, but third-quarter royalty income fell short, partly due to weak smartphone sales. Qualcomm's fourth-quarter results and current-quarter outlook slightly exceeded market expectations, but its smartphone chip sales were affected by weak market conditions. Other chip companies reported that Astera Labs' third-quarter results and fourth-quarter guidance both exceeded expectations; Coherent reported first-quarter results that exceeded expectations and raised its outlook. (Source: Investor's Business Daily)