Shares in Asian semiconductor companies fell further on Wednesday, extending a multi-day decline driven by growing investor unease about the artificial intelligence sector. The sell-off, which began in US markets, has now spread across Asia, according to reports from The Guardian and the BBC.
The rout has been particularly severe in South Korea, where a stock market rout erased approximately $2 trillion in value, Reuters reported. The sell-off was triggered in part by disappointing earnings from SK Hynix, a major memory chip supplier to AI companies. The Financial Times noted that the downturn may also reflect concerns that memory chip prices have become too high, potentially dampening demand.
The Guardian reported that the decline in Asian chip shares is part of a broader pullback from AI-related stocks. Investors have been reassessing the high valuations of companies that have benefited from the AI boom, raising questions about whether growth expectations have become overextended.
The BBC added that the slide in chip stocks has been observed both in the US and in Asia, indicating a global shift in sentiment. Yahoo Finance UK noted that South Korean stocks have been hit especially hard as the technology rout deepened, while oil prices rose on the same day.
Market participants are now watching for further earnings reports from major chipmakers and AI companies to gauge whether the sell-off will continue or stabilize.
