Nasdaq sell-off batters Asian chip stocks as SK Hynix, Samsung, Softbank, TSMC tumble — SkimNews
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- SK Hynix plunged more than 8% and Samsung Electronics shed 7% in South Korea, where LG Innotek fell 10% and LG Display dropped 7.7% as selling spread across the country's technology sector.
- Nasdaq Composite sank 5.5% overnight, closing more than 10% below its recent peak, while the Philadelphia Semiconductor Index plunged 12.2% amid concerns about the sustainability of the AI investment boom and returns on massive data-center spending.
- Advantest plunged 12.2% and Tokyo Electron slid 7.3% in Japan, with SoftBank Group tumbling 11.6% as semiconductor-related stocks were hit.
- TSMC slid 9.6% in Taiwan, where Hon Hai Precision (Foxconn) fell 9.4% and Foxconn Technology lost 9.1% in the regional rout.
- Kioxia Holdings fell nearly 10% and Renesas Electronics declined 7.5%, extending losses across Japanese memory and chip names.
- Democrats' sweeping victory in the U.S. midterm elections was cited by investors as a trigger for tighter data-center restrictions, which they said could slow demand for AI chips and related infrastructure.
Why it matters: The pain is concentrated in the AI hardware supply chain: TSMC down 9.6%, SK Hynix over 8%, and the Philadelphia Semiconductor Index off 12.2% after the Nasdaq's 5.5% drop. Investors tied the risk to tighter U.S. data-center restrictions after the Democratic midterm sweep, alongside doubts about returns on massive data-center spending.
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