Asian chip stocks slide as China competition fears rattle AI trade
Investors also worried that rising Chinese chip capacity and circular financing could squeeze AI valuations, while the Kospi fell nearly 11%, Reuters said.
- On Tuesday, Asian markets fell sharply, led by a deep semiconductor rout as chipmakers faced intense selling pressure while oil prices extended recent declines.
- A report that China's Shanghai Yuliangsheng started mass-producing technology long dominated by Dutch firm ASML triggered the sell-off, challenging the industry's boom.
- South Korea's Kospi collapsed 10.2 percent and Japan's Nikkei slid 4.3 percent, dragging regional indexes lower as tech firms faced pressure following recent all-time highs.
- As the U.S. and Iran paused hostilities for a third day, Brent crude futures fell to $87.55 a barrel, easing geopolitical tensions despite market nervousness.
- Investors remain anxious about potential Federal Reserve rate hikes and AI funding sustainability as markets await earnings from tech titans Microsoft and Amazon.
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63 Articles
Chinese tech grapples with compute shortage
Chinese AI startup Moonshot is looking to acquire more advanced Nvidia chips to create its next model, The Information reported, as China’s tech sector grapples with an AI compute shortage. Moonshot is reported to have stitched together capacity from multiple cloud providers while developing Kimi K3, highlighting the inventiveness of Chinese tech in overcoming Washington’s chip export controls. Beijing’s efforts to build its own domestic semicon…
Chipmaker Rout Drags Nasdaq 100 Near Correction
China's chip industry is giving investors a reason to pause, as new signs of progress are raising fresh questions about whether Beijing is catching up faster than expected. Bloomberg's Peter Elstrom joins Ed Ludlow on "Bloomberg Tech." (Source: Bloomberg)
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