Finance1 min read

Nasdaq sell-off batters Asian chip stocks as SK Hynix, Samsung, Softbank, TSMC tumble

By · Published by Everything Blog

In short

The downturn was triggered by a punishing Wall Street session where the Nasdaq Composite tumbled 5.5% into correction territory alongside a 12.2% plunge in the Philadelphia Semiconductor Index. Regional suppliers in South Korea, Japan, and Taiwan immediately faced heavy pressure due to doubts over AI infrastructure returns. In Taiwan, contract manufacturing giants TSMC and Hon Hai Precision Industry dropped 9.6% and 9.4%, respectively.

Key points

  • Widespread investor apprehension regarding the returns on artificial intelligence capital…: Widespread investor apprehension regarding the returns on artificial intelligence capital spending is driving a global tech retreat.
  • Potential U.S. political changes could introduce tighter regulatory restrictions on futur…: Potential U.S. political changes could introduce tighter regulatory restrictions on future data-center expansion projects.
  • Major Asian semiconductor manufacturers face heightened volatility as market confidence i…: Major Asian semiconductor manufacturers face heightened volatility as market confidence in ongoing AI infrastructure demand weakens.

Sources checked by our analysis pipeline: 1

Asian technology stocks tumbled Friday, tracking a sharp sell-off on Wall Street overnight that sent the tech-heavy Nasdaq Composite into correction territory as renewed concerns over artificial intelligence spending rattled investor sentiment.

South Korean chipmaker SK Hynix plunged over 8%, while Samsung Electronics shed 7%. LG Innotek and LG Display fell 10% and 7.7%, respectively, as selling pressure spread across the country's technology sector.

The rout came as investors worried that Democrats' sweeping victory in the U.S. midterm elections could lead to tighter restrictions on data-center development, potentially slowing demand for AI chips and related infrastructure.

In Japan, semiconductor-related stocks also fell, with chip-testing equipment maker Advantest plunging 12.2%, while Tokyo Electron slid 7.3%. Technology investment giant SoftBank Group tumbled 11.6%.

Shares of memory chipmaker Kioxia Holdings fell nearly 10%, while Renesas Electronics declined 7.5%.

In Taiwan, semiconductor stocks also came under heavy selling pressure, with contract chipmaker TSMC sliding 9.6%. Electronics manufacturers Hon Hai Precision Industry, also known as Foxconn, and Foxconn Technology fell 9.4% and 9.1%, respectively, as the regional technology rout deepened.

The declines followed a brutal…

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