Asian chip stocks slide as China competition fears rattle AI trade
Nvidia fell after reports of circular financing with OpenAI, while CXMT’s nearly 470% debut fueled worries that Chinese rivals are drawing investment.
- On Tuesday, chip stocks from South Korea's SK Hynix and Samsung Electronics plunged more than 10%, with South Korea's SK Hynix falling below its recent debut price as investors reacted to rising Chinese competition and circular financing concerns.
- Fears intensified after China's CXMT debuted on the Shanghai STAR Market with a nearly 470% first-day jump, unveiling a new competitor for capital. Reports of circular financing between Nvidia and OpenAI simultaneously added skepticism about AI-driven valuations.
- Seoul's KOSPI index plummeted nearly 11% on Tuesday, posting its biggest daily loss in five months. The sell-off reflects broader concerns, including reports that Chinese firms are developing technology to compete with the European tech giant ASML.
- Investors are focused on upcoming earnings reports from Samsung and South Korea's SK Hynix to assess the impact of heavy hyperscaler capital expenditure. Analysts are watching whether this spending and associated cash burn will affect semiconductor profitability.
- Federal Reserve policymakers begin a two-day policy meeting today, with markets pricing the gathering as a "live" one. Oil prices remain around $86 per barrel despite the tense pause in the Iran conflict, shaping the broader economic backdrop.
22 Articles
22 Articles
AMD Sinks 8%, Marvell Sinks 7%, Intel Fall 6% as AI Chip Trade Narrows to NVIDIA
Advanced Micro Devices (NASDAQ:AMD) stock is down 9% in midday Tuesday trading to $453.37, while Marvell Technology (NASDAQ:MRVL) shares are off 7% to $175.52 and Intel (NASDAQ:INTC) stock is down 6% to $85.82. Meanwhile, Arm Holdings (NASDAQ:ARM) shares are also down 7% to $246.37. NVIDIA (NASDAQ:NVDA) stock, by contrast, is up 0.5% to $197.58, and ... AMD Sinks 8%, Marvell Sinks 7%, Intel Fall 6% as AI Chip Trade Narrows to NVIDIA
US chipmakers are getting crushed by a familiar source: AI jitters in Asia
South Korea's KOSPI Index fell more than 10% on Tuesday as investors fled formerly red-hot chip stocks.Jung Yeon-je / AFP via Getty ImagesVolatility in Asian markets bleeding into US stocks has become a regular occurrence lately. US chip makers are getting hit on Tuesday after a brutal day in Korea's stock market. The sell-off has "elements of panic," as investors grasp for a reason behind the recent weakness. South Korea is once again dragging …
Nasdaq slumps on worsening chipmaker rout as AI bubble, China competition concerns mount
A tech and chip stock rout deepened Tuesday as mounting fears around a potential AI bubble and concerns that China’s own technology is catching up pushed investors toward other sectors.
Semiconductor stocks in the US and Asia continue to fall. Other areas of the tech sector are also under increasing pressure. This is also linked to developments in China.
Technology actions collapsed this Tuesday, under pressure from fears about the high costs of expanding artificial intelligence infrastructure and concerns about China's increased competition in the memory chip market — an essential component of AI, long-held by South Korea and its competitors. Technology Geopolitics: Brazil adheres to the new AI governance proposed by China. Does it make sense? In Taiwan: Nvidia's official is detained in researc…
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