Tech stock sell-off accelerates; SoftBank drops 6% as investors sour on AI-linked names
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- Samsung Electronics fell 10.18% as the Kospi index plunged up to 8%, reflecting its over 40% weight in the index.
- SK Hynix dropped 7.68% in the same session, contributing to the Kospi's decline.
- SoftBank Group plunged 6.1%, while its British chip arm Arm Holdings fell nearly 13%.
- Broadcom missed fiscal Q2 revenue estimates, triggering a cascade that saw the VanEck Semiconductor ETF (SMH) lose over 9% on Friday.
- Goldman Sachs pushed its forecast for the final two Fed rate cuts to June and December 2027, citing a stronger‑than‑expected labor market.
Why it matters: Shareholders of Samsung, SK Hynix, SoftBank and other AI‑linked firms lose billions as the sector’s $1.8 trillion market‑cap wipe‑out deepens risk‑off sentiment, while investors betting on AI growth face tighter funding and higher borrowing costs.
