Business · Markets · 1 hr ago
Asian chip and tech shares fall after U.S. semiconductor sell-off
Asian technology shares fell on Tuesday after U.S. semiconductor stocks declined on Monday.
South Korean chipmakers SK Hynix and Samsung fell sharply, while SoftBank and several Japanese technology companies also lost ground.
The sell-off came as investors weighed concerns about funding for artificial intelligence and stronger competition in the chip industry.
China’s memory-chip maker CXMT said it had made progress on a new design that can store more data in less space.
But CXMT has not shown it can produce chips at large scale, and it still trails SK Hynix and Samsung in market share.
The decline reflects wider uncertainty about the AI investment boom, chip demand and how long manufacturers can maintain high prices.
Investors are now watching corporate earnings and U.S. inflation data for clues about the outlook for markets and interest rates.
Asian technology shares fell Tuesday after a sell-off in U.S. semiconductor stocks, as concerns about AI financing and rising competition weighed on sentiment.
SK Hynix fell more than 8% and Samsung Electronics dropped 7.9%, reaching their lowest intraday levels since August.
In Japan, SoftBank Group fell 8.03%, while several semiconductor and electronics stocks also declined.
The moves followed a 0.44% drop in the Nasdaq Composite on Monday and news of progress by China’s CXMT on a new chip architecture.
- Who
- Asian technology companies, including SK Hynix, Samsung Electronics and SoftBank Group, saw their shares fall.
- What
- Technology shares declined after a U.S. semiconductor sell-off, amid concerns about AI financing and competition.
- When
- Tuesday; the preceding Wall Street session was Monday.
- Where
- Asian markets, including South Korea and Japan, following a sell-off on Wall Street in the United States.
- Why
- Worries about AI financing and intensifying competition weighed on sentiment. Investors were also assessing CXMT’s progress on a new chip architecture.
Vey-Sern Ling
Phillip Wool
CXMT's competitive threat
Vey-Sern Ling
Ling said Chinese memory makers could threaten the global demand-supply balance over time but face technology hurdles in the short term.
Phillip Wool
Wool said CXMT’s breakthrough showed Chinese chipmakers could overcome technology restrictions and challenge established players sooner than expected.
Market reaction
Vey-Sern Ling
Ling said investors were jittery and taking profits on AI-related stocks, especially memory stocks.
Phillip Wool
Wool said the sell-off appeared disproportionate to the immediate competitive threat and reflected vulnerable AI sentiment.
CXMT announced progress in developing a new chip architecture designed to increase memory density.
The Nasdaq Composite fell 0.44% as U.S. technology shares had a weak session.
Asian technology shares fell, including SK Hynix, Samsung Electronics and SoftBank Group.
- SK Hynix
- Fell more than 8%.
- Samsung Electronics
- Fell 7.9%.
- SoftBank Group
- Fell 8.03%.
- Nasdaq Composite
- Dropped 0.44% on Monday.
- CXMT
- Announced progress on a new chip architecture over the weekend.
What people are saying
Investors are jittery and looking for excuses to take profit on AI-related stocks that have outperformed this year, especially memory stocks
I read that more as a sign of how vulnerable AI sentiment is at this moment
Sources
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