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Why AI Chipmaker Stocks Are Taking a Dip

The Wall Street Journal • 2026-06-05T16:00:39Z • 1:47:00 • intermediate • Business

Lead

Curious about the recent dip in AI chipmaker stocks? Discover the reasons behind this trend and what it means for the future of the industry.

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Quiz

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Q1. What was Broadcom's expected sales figure for AI chips in the next fiscal year?

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Q2. Which two companies are identified as the biggest players in the AI chip market?

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Q3. What has caused the stocks of Nvidia and Broadcom to fall recently?

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Q4. What financial action did Google announce to support its AI initiatives?

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Q5. What concern is raised regarding AI spending among major companies?

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Vocabulary

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capitalization

/ˌkæpɪtəlɪˈzeɪʃən/

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Definition

The total value of a company's outstanding shares of stock.

Example

The company's market capitalization has increased significantly over the past year.

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expenditures

/ɪkˈspɛndɪtʃərz/

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Definition

The action of spending funds or the amount of money spent.

Example

The government's expenditures on infrastructure have led to improved public services.

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forecast

/ˈfɔrˌkæst/

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Definition

A prediction or estimate of future events, especially regarding financial performance.

Example

Analysts have revised their forecast for the company's earnings this quarter.

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gravitating

/ˈɡrævəˌteɪtɪŋ/

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Definition

To be attracted or drawn towards something.

Example

Investors are gravitating towards more sustainable energy companies.

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surge

/sɜrdʒ/

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Definition

A sudden powerful forward or upward movement.

Example

There has been a surge in demand for electric vehicles in recent years.

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unprecedented

/ʌnˈprɛsɪˌdɛntɪd/

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Definition

Never done or known before; without previous example.

Example

The pandemic caused unprecedented changes in the global economy.

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