Chip stocks slide as AI investment doubts spread

Summarised from 2 outlets · Updated 13 Oct, 09:20 · Archive

Semiconductor shares fell sharply across Asia after Broadcom's boss compared many AI investors to 'casino' gamblers.

Semiconductor shares fell sharply across Asian markets on Tuesday following comments from Broadcom's chief executive comparing many AI investors to 'casino' gamblers. The remarks fuelled concerns among investors about the sustainability of heavy spending on artificial intelligence infrastructure, much of it funded by debt.

South Korea's Kospi benchmark index tumbled 6.25% as investors sold chip stocks heavily. Samsung Electronics shares dropped 7.4% on the South Korean exchange, whilst memory chip maker SK Hynix fell 10%. Across the region, Japan's Nikkei fell 1.8% and Taiwan's exchange lost almost 2%, with chip maker TSMC down by a similar amount. Chip equipment maker Tokyo Electron fell 7.15% in Japan, whilst SoftBank Group, an OpenAI investor, lost 8.5%.

US stock futures pointed to a mixed open on Wall Street. Chip makers Micron Technology slid 3.9%, whilst Nvidia, Advanced Micro Devices and Broadcom also fell. The Guardian reports that the sell-off was further triggered by announcements that Chinese memory chip maker CXMT had made progress on new Dram architecture, prompting investor worries it could challenge Samsung, SK Hynix and Micron's market position.

How it is being reported

• Chip stocks slide after Broadcom boss likens AI investing to ‘casino’Asian markets fall and Samsung shares tumble after its Chinese rival CXMT claims strong progress Business live – latest updates Shares in semiconductor companies fell on Tuesday after the boss of Broadcom compared many AI investors to “casino” gamblers, and Chinese memory chip maker CXMT said it had made good progress on a new chip architecture. South Korea’s benchmark Kospi index tumbled 6.25% as investors dumped chip stocks, while other Asian markets were also lower. Japan’s Nikkei fell 1.8% and the Taiwan exchange lost almost 2%, with the country’s chip maker TSMC down by a similar…The Guardian · 13 Oct, 09:01
• Chip stocks slide as fears mount over scale of AI investment‘Casino’ comments by Broadcom boss help push Samsung and SK Hynix down sharply in SeoulFinancial Times · 13 Oct, 03:58

In this story: Broadcom · Samsung Electronics · SK Hynix · CXMT · South Korea · TSMC · Micron Technology

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