Shares in Asian semiconductor companies fell sharply for a second consecutive day after South Korea's SK Hynix posted quarterly results that, despite being record profits, fell short of investor expectations. The sell-off underscores growing unease about whether the enormous spending by technology firms on AI infrastructure can be sustained, with the memory chip sector having become central to the AI investment boom.

Seoul's Kospi index, dominated by chipmakers, fell as much as 12.6% on Wednesday, following an 11% slump the day before, marking a record two-day decline of over 40% from its peak roughly a month earlier. SK Hynix shares dropped as much as 16%, while Samsung Electronics fell nearly 10%; the two firms together make up more than half the Kospi's market value. Japan's Nikkei slid 1.5%, Taiwan's TSMC fell 3%, and US chipmakers including Intel and AMD also declined, while Apple's stock rose towards a $5tn valuation as investors sought safer assets. Analysts noted that retail investors using borrowed money, who had driven the earlier rally, were now exacerbating the sell-off, prompting South Korea's finance minister to say the government was reviewing market stabilisation measures.