Key highlights:
- SK Hynix tumbled nearly 7%, leading a broad sell-off in Asian semiconductor stocks after weakness in U.S. AI names
- SoftBank, Samsung Electronics, Tokyo Electron, TSMC and Kioxia also fell as investors reduced exposure to AI-related equities
- Despite the volatility, J.P. Morgan says the AI investment cycle remains intact, citing no signs of slowing hyperscaler spending
Asian chip stocks retreat after Wall Street AI rout
Asian technology shares came under heavy selling pressure on Thursday, extending losses from Wall Street as investors reassessed valuations across the artificial intelligence sector following another volatile trading session in the United States.
South Korea’s , reflecting cautious investor sentiment across the semiconductor supply chain.
The regional decline followed a volatile overnight session in the U.S., where investors rotated out of several AI-related technology stocks after months of outsized gains.
AI investment outlook remains resilient
Despite the latest correction, analysts argue the sell-off reflects short-term positioning rather than weakening demand for AI infrastructure.
In a research note released Wednesday, J.P. Morgan said the recent weakness across Asian technology shares has not changed its constructive outlook for the artificial intelligence investment cycle.
The investment bank said it does not expect hyperscale cloud providers to reduce AI-related capital expenditures despite investor concerns surrounding elevated spending.
The comments suggest that recent market volatility is being driven more by valuation adjustments than deteriorating business fundamentals.
AI spending continues to support global technology demand
Broader industry data also points to continued strength in technology investment.
According to S&P Global, artificial intelligence and defense spending remain two of the strongest drivers of global economic growth.
The firm’s latest report showed that the Global Purchasing Managers’ Index (PMI) for technology equipment expanded in July at its fastest pace since May 2021.
S&P Global also noted that technology recorded its fastest growth in ten months, supported by rising demand for software, cloud infrastructure, and IT services.
The latest figures indicate that demand for AI hardware and supporting technologies remains robust even as equity markets experience heightened volatility.
Volatility replaces momentum
Thursday’s decline comes just one day after Asian technology stocks staged a powerful rally, underscoring the increasingly volatile nature of AI-related equities.
SoftBank had surged more than 13% during Wednesday’s session, while several semiconductor stocks also posted strong gains before sentiment reversed overnight.
The sharp swings highlight how quickly investor expectations can change as markets weigh elevated valuations against continued optimism surrounding artificial intelligence.
Source:: Asian Tech Stocks Sink as SK Hynix Plunges by Nearly 7% Following Wall Street AI Sell-Off