Chip Stocks Deepen Losses as Concerns Mount Over Rates, AI Debt
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Global technology hardware stocks fell Thursday as Asian chipmakers tracked US peers lower amid rising interest rate concerns.
- ✓Samsung Electronics and SK Hynix slid over 5% each, dragging the Kospi down.
- ✓Kang DaeKwun said, “The South Korean stock market’s valuation has dropped to an extreme level now,” as investors fear AI costs.
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- MARKET
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- Livemint
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- 2 Minute(s)
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- India Economy
(Bloomberg) -- A rout in global technology hardware stocks extended Thursday, as Asian chipmakers followed US peers lower on worries over Federal Reserve interest rate hikes and AI funding difficulties.
Top memory makers Samsung Electronics Co. and SK Hynix Inc. slid more than 5% each, sending the South Korean benchmark Kospi down as much as 5.7%. Japan’s Nikkei 225 dropped more than 2%, with chip-equipment makers Tokyo Electron Ltd. and Screen Holdings Co. down at least 3% each.
A closely watched US gauge of semiconductor stocks has erased $1.6 trillion in market value in a six-day losing streak, as concerns mount over higher interest rates, stretched valuations and the huge costs of building AI infrastructure. Strong earnings reports from Samsung and ASML Holding NV have failed to calm investors.
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