Nasdaq sell-off batters Asian chip stocks as SK Hynix, Samsung, Softbank, TSMC tumble

Asian chip and technology stocks plunged after a steep Wall Street sell-off, as investors questioned whether the AI investment boom can deliver returns to justify heavy data-centre spending. The falls matter because Asian companies supply much of the hardware used in AI infrastructure, leaving them exposed to any slowdown in US construction.

Taiwan’s TSMC fell 9.6%, while Foxconn and Foxconn Technology dropped 9.4% and 9.1%. China’s STAR Market and ChiNext Artificial Intelligence Index each lost more than 4%; in the US, the Nasdaq fell 5.5% and the Philadelphia Semiconductor Index sank 12.2%, leaving the Nasdaq more than 10% below its recent peak. A Goldman Sachs strategist said position unwinding, stop-loss selling and volatility had intensified the declines, while possible political opposition to US data-centre projects could threaten demand.