A global technology hardware stock rout extended into Thursday, dragging Asian chipmakers lower on concerns over Federal Reserve interest rate hikes and AI funding challenges. Top memory makers Samsung Electronics Co. and SK Hynix Inc. each fell more than 6%, pushing South Korea’s Kospi index down as much as 6.5%. Japan’s Nikkei 225 declined over 3%, with semiconductor firms like Ibiden Co. and Kioxia Holdings Corp. among the worst hit.
A key US semiconductor gauge has lost $1.6 trillion in market value over six consecutive days, driven by fears of higher rates, stretched valuations, and massive AI infrastructure costs. Despite strong earnings from Samsung and ASML Holding NV, investor sentiment remains weak. Jo Hyunik of Iroom Investment Advisors cited market fatigue and uncertainty around US rates and the midterm elections.
Core Weave Inc.’s bond plunge reignited doubts about AI spending sustainability. The Kospi is on its longest losing streak since September 2024, trading at its lowest since late July. Kang Dae Kwun of Life Asset Management noted the market’s extreme valuation but warned that tech funding issues must be resolved before recovery.
Upcoming earnings from Taiwan Semiconductor Manufacturing Co. are the next key event for Asian chip stocks.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing