Shares in Asian chip firms plunge further as AI sell-off continues - The Guardian

The continued sell-off in AI-related stocks has led to further declines in Asian chip firm shares. The downturn was triggered by disappointing results from SK Hynix, a South Korean chipmaker, which ca... Read original →

The retreat from AI-driven investment has triggered a sharp downturn in semiconductor stocks, with SK Hynix's disappointing results sparking panic selling and a 16% stock drop. Despite record Q2 profits, the company failed to meet expectations, dragging the Kospi index to its lowest point since April. Samsung also suffered a nearly 10% decline, amplifying market-wide instability. The sell-off extended to U.S. firms like Intel and AMD, signaling broader investor skepticism about the sustainability of AI spending. Memory chip demand, central to data center growth, now faces scrutiny. Manufacturing firms such as TSMC and Samsung are grappling with uncertain orders, while downstream sectors like automotive and industrial AI are gaining traction. Policy responses from South Korea and China are being evaluated to stabilize markets, but short-term sentiment remains fragile. Without clear long-term contracts or breakthrough innovations, the semiconductor sector may continue to face headwinds over the next 12–24 months.