Asian technology and chipmaking stocks tumbled on Monday as investor caution deepened over uncertainties in the artificial intelligence sector and its impact on future earnings.
Chipmakers were under pressure after a string of results and guidance in the U.S. reinforced concerns about aggressive AI spending and margin sustainability.
Broadcom Inc (NASDAQ:AVGO) shares sank last week after the company warned of narrower margins despite strong AI chip demand, intensifying unease about cost inflation in the AI hardware space.
Before this, Oracle Corporation (NYSE:ORCL) flagged weak guidance and higher expenses tied to aggressive AI spending, intensifying investor skepticism about how Wall Street’s tech giants will generate returns on massive AI investments.
In Asia, South Korean shares led the decline, with Samsung Electronics (KS:005930) and SK Hynix (KS:000660) both declining nearly 4%.
Taiwan Semiconductor Manufacturing Co (TSMC) (TW:2330) shares traded 2% lower.
Japan’s Advantest Corp. (TYO:6857) slipped 6%, while SoftBank Group (TYO:9984) shares tumbled over 7%.
Hong Kong-listed Semiconductor Manufacturing International Corp (HK:0981) shares fell 2.5%, while Hua Hong Semiconductor (HK:1347) declined more than 5%.
China’s Alibaba Group (HK:9988), Baidu Inc (HK:9888), and Xiaomi Corp (HK:1810) fell in the range of 2% to 4%.
