The semiconductor sector just lost around $1.01 trillion in market value in a single trading session.

Intel plunged 28.4%, AMD dropped 9.7%, TSMC fell 5.4%, and even Nvidia lost around $185 billion in market value despite falling just 3.6%. But here's what makes this interesting: AI demand isn't necessarily disappearing. So, what exactly are investors worried about?

Intel's latest outlook exposed a few major concerns:

Supply shortages are limiting server processor shipments. High memory chip prices are putting pressure on PC demand. Massive AI infrastructure spending is raising questions about when the returns will actually arrive.…