Asian technology stocks extend sell-off with SoftBank down 7% as AI plays take a hit - CNBC

What the report says

CNBC reported that Asian technology shares extended a global sell-off on Wednesday, with semiconductor and artificial intelligence-linked stocks among the hardest hit. Japan’s SoftBank Group, often treated by investors as an AI proxy because of its Arm exposure, fell 6.95%. Other Japanese chip-related names also declined, including Kioxia, down 13.85%, and Tokyo Electron, down 10.59%. Taiwan Semiconductor Manufacturing Co. slipped 3.51%.

The pressure followed a sharp pullback across major chipmakers worldwide. CNBC, citing FactSet data, said 20 of the world’s most valuable chip companies had lost $1.3 trillion in market value since Friday’s close. Nvidia accounted for $238 billion of that decline, while SK Hynix, Samsung Electronics, Micron, AMD and TSMC each shed more than $100 billion. South Korea’s SK Hynix closed 9.61% lower after earlier dropping more than 15%, despite reporting record quarterly profit and revenue that missed analyst expectations. Samsung Electronics lost more than 5%.

Analysts quoted by CNBC framed the move largely as a reassessment of expectations after a powerful AI-driven rally, rather than clear evidence of weakening demand. Morningstar’s Michael Field pointed to a loss of investor confidence, while Forrester’s Charlie Dai said markets were questioning whether near-term revenue can support very high AI infrastructure spending. Aberdeen Investments’ Kieron Poon said the volatility had not changed its longer-term positive view.

The weakness was not universal. CNBC noted that Hong Kong-listed Chinese internet stocks moved higher, with Tencent, Meituan, Alibaba, Baidu and Kuaishou rising, even as the Hang Seng China Semiconductor Chips Index fell.