US tech stocks rebound after steep AI-driven selloff hits Asia

Summarised from 2 outlets · Updated 19 Oct, 19:31 · Archive

Artificial intelligence stocks recovered some losses on Wall Street after a sharp selloff that hit Asian hardware makers particularly hard.

US artificial intelligence stocks recovered some of their losses on Wall Street, with the Nasdaq composite rising 1.1 per cent after its worst week since June. The S&P 500 rose 0.5 per cent, though the majority of US stocks outside AI and tech were falling.

The bounce followed a dramatic selloff last week that exposed vulnerabilities in Asia's AI trade. An eight-session rout in US semiconductor shares wiped roughly 16 per cent off the sector's benchmark. Asian chipmakers and hardware suppliers were hit particularly hard: a Goldman Sachs basket of Asian AI hardware stocks tumbled 11 per cent, with Unimicron Technology falling 14 per cent and Samsung Electro-Mechanics plunging 23 per cent in a week.

Investors remain concerned about the trillions of dollars being borrowed to build AI infrastructure, particularly as Treasury yields have hit their highest levels in years. Oil also surged to $US110 a barrel, stoking inflation concerns. The Australian sharemarket is set to retreat by around 0.8 per cent at the open, though analysts expect it to come off relatively unscathed compared to Asia given Australia's lack of direct exposure to AI companies.

How it is being reported

• ASX set to fall, AI stocks rebound on Wall StreetStocks in the artificial-intelligence industry are bouncing back on Wall Street and recovering some of their steep losses from last week, but the rest of the market and stocks worldwide are shaky.WAtoday · 19 Oct, 19:19
• Wall Street’s AI selloff bleeds into Asia but Australia looks to be safe given its lack of tech exposureA deepening selloff in US technology stocks exposed a new vulnerability in Asia’s artificial intelligence trade, threatening earnings across a supply chain that has powered the region’s sharemarket rally.The West Australian · 18 Oct, 03:11

In this story: Wall Street · Asia · Australia · Taiwan Semiconductor Manufacturing · Nan Ya Plastics · Unimicron Technology Corp. · Samsung Electro-Mechanics

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