Global Market: South Korea’s Kospi Plunges over 7% as Chip Stocks Tumble on CXMT Concerns
- On Tuesday, South Korea's Kospi stock market plunged more than 7% intraday to its lowest level since July 31, extending a dramatic reversal for what was once the world's hottest AI-fueled stock market.
- Chinese memory-chip maker CXMT plans to introduce a new server-memory product by year-end, a development Chris Weston, head of research at Pepperstone, said is "challenging established assumptions around market share, pricing power and the durability of margins."
- AI chip heavyweights Samsung Electronics and Hynix led the losses, falling 9% and 10% respectively, while weakness spread across Asia as Japan's Nikkei and Taiwan's Taiex both fell around 3%.
- Broadcom CEO Hock Tan warned Monday that capital, rather than chips or electricity, could become the biggest constraint on the AI industry's growth, adding to investor concerns over pricing power.
- While CXMT has yet to demonstrate it can manufacture this technology at scale, investors are looking beyond AI demand alone to assess how the industry's massive infrastructure buildout will be financed.
92 Articles
92 Articles
Why Samsung, SK Hynix and CXMT shares are under pressure despite strong AI demand
A sharp sell-off in Asian memory chip stocks this week signals growing investor doubts over whether the sector’s AI-driven profit boom can last, even as soaring prices drive strong quarterly earnings across the sector. Shares in market leaders Samsung Electronics and SK Hynix plunged in Seoul on Tuesday, extending a days-long slide that has also swept up Chinese rival ChangXin Memory Technologies (CXMT). Samsung and SK Hynix closed down 7.4 per …
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Asian Chip Stocks Fall as China’s AI Advances Fuel Competition Concerns
Asian stock markets dropped to their lowest levels in more than two months as investors reconsidered the profitability of artificial intelligence investments. Advances by Chinese memory-chip maker ChangXin Memory Technologies heightened concerns about growing competition, while government bonds attracted investors seeking safer assets.
There were no significant negative factors on the 13th capable of bringing down the KOSPI. The U.S. bond market, which had been pressuring global stock markets, took a breather on the 12th (local time), while international oil prices are fluctuating at levels they had surged to in the middle of last month. The fact that China's Changxin Memory (CXMT) announced its technological pursuit amplified concerns about intensifying competition in the sem…
South Korea's Kospi index sinks more than 5% on semiconductor share sell-off over AI boom worries
South Korea’s benchmark Kospi index has fallen more than 5% on a sell-off of chip shares and Asian shares have mostly declined after U.S. stocks ended mixed. U.S. futures also are mixed and oil prices have dropped as tensions in…
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