AI sell-off hits Singapore tech stocks, but analysts see correction rather than end of boom

Singapore’s technology stocks fell sharply on Friday as a global sell-off in AI-related shares spread to Asian markets. Analysts said the declines reflected a correction in high AI valuations and uncertainty over possible US regulation, rather than clear evidence that the AI investment boom had ended.

UMS Integration dropped 15.2 per cent at the open before recovering to close at S$1.69, while AEM Holdings fell as much as 13 per cent before closing at S$6.20. Frencken ended about 6 per cent lower and Venture Corporation 3 per cent lower; Singapore’s Straits Times Index lost more than 2 per cent. Analysts said Singapore’s exposure is concentrated in semiconductors and electronics, and warned that volatility could continue until the regulatory outlook and demand for AI infrastructure become clearer.