Semiconductor stocks are going through a global sell-off.
Investors have become worried that major artificial intelligence (AI) hyperscalers won’t get enough out of the money they’ve spent on AI data centers and infrastructure
In case AI hyperscalers scale back on their AI capex, this would reduce sky-high demand for semiconductors and memory chips. Some of these investor concerns about semiconductor stocks can be seen in Asian stock markets, where many of the world’s leading semiconductor and memory chip companies are located. Asian stocks have benefited from the AI boom.
But according to Bloomberg, the MSCI Asia Pacific index has declined by about 10% since its June 22 all-time high. More than 20% of this index consists of three major chip stocks from Taiwan and South Korea. Since June 22, shares of other leading semiconductor stocks around the globe have also dropped.