AI Worries Send Asia’s Chip Stocks Tumbling
Trending Topics Jakob Steinschaden ● Covered by 75 sources
Asian semiconductor stocks fell sharply on Tuesday, with South Korea's KOSPI down 9% and Japanese chipmakers like SK Hynix and Kioxia losing 13-18%, triggered by concerns over Nvidia's $750 billion in new AI financing commitments and reports of Chinese competition in advanced chip equipment. Major US tech companies including Microsoft, Meta, Apple and Amazon report earnings this week while facing scrutiny over rising capital expenditure, with the five largest hyperscalers set to invest over $690 billion in fiscal 2026, increasingly funded by debt that has risen from 9% to 32% of capex since 2024. The broader question for markets is whether AI infrastructure spending will generate sufficient revenue growth to justify the mounting debt load, with credit conditions showing early signs of tightening.
Why it matters
Asian equity markets fell sharply on Tuesday, led by South Korea and Japan. The KOSPI plunged more than nine percent to its lowest level since mid-April, triggering volatility interruptions in early trading. Japan’s Nikkei 225 lost as much as four percent, while the broader TOPIX shed around three percent. Memory makers and equipment suppliers were […] Der Beitrag AI Worries Send Asia’s Chip Stocks Tumbling erschien zuerst auf Trending Topics.
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