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Asian Chip Stocks Slide as Nasdaq Sell-Off Hits SK Hynix, Samsung and TSMC
Asian chip stocks slid Friday as a Nasdaq sell-off hit SK Hynix, Samsung and TSMC.
Key points
- SK Hynix plunged 10.44% and Samsung Electronics shed 6.35% in South Korea.
- The Nasdaq Composite sank 5.5% and closed more than 10% below its recent peak.
- Investors worried Democrats' sweeping U.S. midterm victory could lead to tighter data-center restrictions.
Why it matters. Demand for AI chips and related infrastructure may slow if political opposition constrains U.S. data-center construction, Goldman Sachs strategist Timothy Moe said.
Asian technology stocks tumbled Friday after the Nasdaq Composite sank 5.5% overnight into correction territory. SK Hynix plunged 10.44% and Samsung Electronics shed 6.35%, while SoftBank Group tumbled 10.83% in Japan and TSMC slid 4.69% in Taiwan. Investors feared Democrats' sweeping U.S. midterm victory could tighten data-center rules, and Goldman Sachs's Timothy Moe blamed unwinding positions and stop-loss selling.
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Asian Chip Stocks Slide as Nasdaq Sell-Off Hits SK Hynix, Samsung and TSMC
Asian technology stocks tumbled on Friday, tracking a sharp sell-off on Wall Street that pushed the tech-heavy Nasdaq Composite into correction territory. Shares of SK Hynix, Samsung, SoftBank and Taiwan Semiconductor Manufacturing Co. (TSMC) were among the biggest decliners. The regional selloff reflected investor concern over artificial intelligence valuations and the outlook for chip demand. Because Asian markets trade ahead of U.S. sessions, the reaction showed how quickly the U.S. losses spread across the region. Further market moves will depend on the performance of U.S. technology stocks.