On Thursday, Asian semiconductor stocks fell sharply, mirroring a sell-off in U.S. chipmakers. SK Hynix saw its shares drop more than 9% in Seoul, reversing an 8% gain from the previous session, following a volatile week since its U.S. listing. The stock had previously experienced its largest one-day decline on Monday as investors took profits amid concerns about AI spending.
Other major players like Samsung Electronics, Seoul Semiconductor, and LG Innotek also reported losses, with Samsung Electronics down over 7%. The downturn extended to Japan, affecting companies such as Advantest and SoftBank Group. The declines in Asia followed a significant drop in U.S. semiconductor stocks, including an 8% fall for Micron Technology and a 4% loss for Intel.
Rolf Bulk from Futurum Group noted that the declines were largely a continuation of the U.S. market's performance, citing a proposed moratorium on data-center construction in New York as a negative signal. Despite strong earnings from ASML, which raised its sales guidance, the overall sentiment in the semiconductor sector remains cautious.
Louis Kondratev from XFUNDs remarked on the crowded nature of semiconductor trades, indicating that while earnings momentum has been strong, sustaining high valuations may become increasingly challenging as investors reassess the market