Shares in Asian chip firms plunge further as AI sell-off continues
Summary
Shares in Asian chip companies fell sharply after SK Hynix, a major South Korean chipmaker, reported strong profits but missed investors' expectations. This caused a big drop in South Korea’s stock market for the second day, with other chip companies also losing value. The market’s fall reflects worries about how long companies will keep spending on AI technology.Key Facts
- SK Hynix’s shares dropped by up to 16% after it missed profit expectations despite strong results.
- South Korea’s Kospi stock index fell as much as 12.6%, hitting its lowest point since April.
- Samsung Electronics shares also fell nearly 10%, both companies are major parts of the Kospi market.
- Japan’s Nikkei index dropped 1.5%, and Taiwan’s TSMC shares fell 3% amid the sell-off.
- U.S. chip company stocks, including Intel and AMD, also declined recently.
- Some investors who bought shares with borrowed money worsened the stock market fall by quickly pulling out.
- South Korea’s finance minister said the government is looking at ways to stabilize the market.
- As chip stocks dropped, Apple’s stock rose briefly above a $5 trillion valuation as investors sought safer options.
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