Asian chip stocks tumble as AI funding worries and Fed rate hike fears mount
CNBC reported that Asian chipmakers extended Wall Street's losses as worries over AI funding and a possible US Fed rate hike mounted: SK Hynix fell more than 10% on the KRX and Samsung dropped about 10%, while Nvidia, Micron and AMD were all lower in premarket trading. Separately, CCTV via 36Kr said Japan's Nikkei index closed down 4.90% at 64,425.95 on October 15, a fall of 3,318.34 points and its biggest single-day drop since March, dragged by semiconductor equipment names such as Advantest and Tokyo Electron. The reports attributed the selloff to a higher-than-expected US September consumer price index, which raised rate-hike expectations and reduced risk appetite, hitting AI and semiconductor shares.
If the selloff driven by rate expectations and doubts about AI funding persists, AI chip and compute vendors could face pressure on both valuations and financing.