Chip stocks outperform broader markets on signs of strong AI spend

** Philadelphia Semiconductor Index SOX rises 0.6%, bucking the broader market trend as signs of increasing investments in AI spurred bets of higher demand for chips that support the technology

** Broadly, Meta Platforms META drops 13%, weighing on tech peers and pulling the S&P 500 SPX 1.5% lower after the Instagram parent forecast higher AI expenses and lighter-than-expected revenue

** "Semis are broadly stronger, buoyed by META's capex spend (at least $70 bln over next 2 years)" - J.P.Morgan traders' note

** AI bellwether Nvidia NVDA firms 2%, while Broadcom AVGO, Marvell Technology MRVL and Lam Research LRCX advance between 2.6% and 4%

** Alphabet GOOG and Microsoft MSFT, slated to report quarterly results after markets close, said earlier this year they expected AI costs to rise

** Semiconductor-testing equipment maker Teradyne TER climbs 6.7% after upbeat forecast

** SOX up 10% YTD on AI boost compared to 5% gain in SPX