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Global Semiconductor Stocks Sell-Off over AI Boom Worries Pulls Asian Shares Lower
Investors questioned whether AI profits can keep pace with rising financing costs and debt-fueled data-center expansion, sending Broadcom, Samsung and SK Hynix lower.
- On Tuesday, U.S. chipmakers fell as reports that Chinese memory giant CXMT made "key progress" on a new cell architecture stoked competition fears, adding to jitters over AI spending in a sector that has rallied sharply this year.
- Describing the move as a rush to take profits, Robert Pavlik, senior portfolio manager at Dakota Wealth, noted the selloff, while Broadcom CEO Hock Tan on Monday compared AI sector investments to "casino gambling".
- In South Korea, the KOSPI fell more than 6% as shares of Samsung Electronics and SK Hynix tumbled, while the Philadelphia chips index shed 2.7% Tuesday following a matching decline the prior session.
- Warnings from the International Monetary Fund on Tuesday suggest "the consequences of an AI correction could be global", with growing evidence that AI capability investments may not yield expected economic gains.
- Pointing to "potential volatility around the AI buildout", BlackRock moved its U.S. equities stance to neutral on Monday, while Firmus pulled a planned $5 billion Australian IPO last week after failing to attract sufficient demand.
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Asian shares trade mixed after US stocks edge back from their record a
TOKYO (AP) — Asian shares were trading mixed early Wednesday, as market interest in computer chips and artificial intelligence continued to support some global shares. Japan’s benchmark Nikkei 225 gained 0.6% to 68,193.13. Australia’s S&P/ASX 200 declined
·Baltimore, United States
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Coverage Details
Total News Sources76
Leaning Left9Leaning Right12Center18Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 23%
C 46%
R 31%
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