Business · Markets · 1 hr ago
Global Chip Stocks Fall on Rate Fears and AI Funding Concerns
Global technology hardware stocks fell further on Thursday as a sell-off spread across markets.
Asian chipmakers followed US peers lower, extending the decline.
Investors were concerned that the Federal Reserve could raise interest rates, which can make borrowing more expensive.
They were also worried about difficulties funding artificial intelligence projects.
The two concerns weighed on chipmakers and other technology hardware companies.
The decline shows how rate expectations and questions about AI funding are affecting the sector.
No next steps were specified.
Global technology hardware stocks fell as Asian chipmakers followed Wall Street lower amid concerns about further US interest rate hikes and the cost of financing artificial intelligence investments.
SK Hynix shares fell more than 10%, while Samsung Electronics dropped 7.1%.
The sell-off followed Wednesday’s losses on Wall Street after hotter-than-expected US inflation data heightened rate concerns.
Investors worried that higher borrowing costs could weigh on the capital spending needed to build AI infrastructure.
Tech analyst Dan Ives said AI computing demand remained robust and described the pullback as a potential buying opportunity.
- Who
- Global technology hardware companies, including Asian chipmakers.
- What
- Their shares fell amid concerns about interest rates and AI investment financing.
- When
- Thursday, October 15, 2026.
- Where
- Global markets, including Asia and Wall Street.
- Why
- Investors feared higher borrowing costs could make it harder to finance AI infrastructure spending.
Investors concerned about AI financing
Dan Ives
Financing costs
Investors concerned about AI financing
Investors worried higher borrowing costs could pressure companies’ ability to fund AI infrastructure.
Dan Ives
Ives said rates are a financing concern, not a sign of weaker demand.
Investment outlook
Investors concerned about AI financing
Investors’ concerns weighed on AI-related stocks.
Dan Ives
Ives called the pullback a potential buying opportunity and said AI demand remained robust.
Broadcom and Intel chief executives warned that financing could become a major headwind to the AI boom.
Hotter-than-expected US inflation data fueled rate concerns as technology shares led Wall Street losses.
Asian chipmakers extended the sell-off, with SK Hynix falling more than 10% and Samsung Electronics dropping 7.1%.
- SK Hynix
- Shares fell more than 10%
- Samsung Electronics
- Shares fell 7.1%
- Nasdaq Composite
- Fell 1.88% to close at 26,692.87
- S&P 500
- Fell 1.11% to end at 7,718.94
- US Treasury yields
- Above 5% according to Dan Ives’s note
2 sources
What people are saying
Higher yields raise the cost of financing these builds, and investors are right to focus on balance sheets and contract structure, but rates are a financing question, not a demand question
What would change our view is a demand signal, not a rate signal