The Cboe Volatility Index (VIX) rose 11.5 points on Thursday to 28.09, its highest level in eight months and its biggest intraday gain in more than 18 months. Sharp declines in chip and data center-related stocks dragged major indexes lower. The VIX later stood at 27.65, while the Nasdaq Composite fell 4%; investors were concerned that political changes in Washington could slow the buildout of AI infrastructure. Analysts said the selloff could partly reverse the previous session’s gains and unwind crowded AI positions, while also expecting funds and strategies to sell as volatility rises. Interactive Brokers chief strategist Steve Sosnick warned that it would be a problem if the market were to reassess AI investment over the longer term, rather than simply make a trading adjustment.