Business · Markets · 2 hrs ago
Chip stocks fall as investors question the sustainability of AI spending
Samsung Electronics and SK Hynix shares plunged on October 15, even as the companies reported strong results.
Investors are questioning how long the chip boom can last, amid concerns about China’s push to develop competing memory chips and uncertainty about future demand.
China’s CXMT has announced a new server-memory design, but its ability to produce it at scale has not been confirmed.
AI companies’ spending is another major risk because chip sales depend on cloud and data-centre businesses continuing to invest and earn enough to cover their costs.
Gartner warned that more than $3.5 trillion in AI infrastructure investment could face the risk of losing value by the end of 2030 if current spending continues.
Samsung and SK Hynix face key tests in their upcoming results, scheduled for October 29 and 28 respectively, when details of shareholder-return plans and the durability of earnings may affect how investors value their shares.
Major semiconductor stocks fell as investors questioned whether AI infrastructure companies can sustain their spending.
On October 15, Samsung Electronics shares dropped 9.48% and SK Hynix shares fell 11.06%.
The article cited concerns about Chinese competition and whether AI infrastructure firms can afford their investments and repay the costs.
US companies tied to AI infrastructure also came under pressure amid concerns about borrowing costs and investment returns.
A separate report said Samsung Electronics and SK Hynix were trading at historically low valuations despite expectations for strong earnings.
- Who
- Semiconductor companies including Samsung Electronics and SK Hynix, and investors assessing AI-related spending.
- What
- Chip stocks fell as investors questioned the sustainability and profitability of AI infrastructure investment.
- When
- Samsung Electronics and SK Hynix shares fell on October 15; the reports were published on October 16, 2026.
- Where
- The declines involved South Korean and US markets; the concerns relate to global semiconductor and AI infrastructure businesses.
- Why
- Investors were concerned about Chinese competition and whether AI infrastructure firms can fund their investments and earn sufficient returns.
This story does not have two clearly opposing sides.
Broadcom chief executive Hock Tan said capital would be the biggest constraint ahead.
Micron shares fell 3.62%.
After US inflation data was released, CoreWeave shares fell 16% and Oracle shares fell 9%.
Samsung Electronics shares dropped 9.48% and SK Hynix shares fell 11.06%.
Maeil Business and Hankyung published reports on chip stocks, AI investment concerns and company valuations.
- Samsung Electronics
- Shares fell 9.48% on October 15
- SK Hynix
- Shares fell 11.06% on October 15
- Micron
- Shares fell 3.62% on October 13
- AI-related new debt issuance
- Fell from $113 billion in June to $23 billion in September
- Potential AI infrastructure impairment risk
- Gartner estimated more than $3.5 trillion could be exposed by the end of 2030
What people are saying
Many investors have no idea what they are investing in, yet have extremely extreme expectations, only to find out that it is almost like gambling in a casino
There is risk because the degree of development or scale is uncertain, whether in drug development or physical AI
The impact of an AI adjustment could be felt worldwide