Asian Semiconductor Stocks Tumble as US Chip Sell-Off Spreads; SK Hynix Falls Over 9%

According to CNBC, Asian semiconductor stocks tumbled Thursday as a sell-off in U.S. chipmakers spilled into the region, with SK Hynix continuing to see massive volatility since its U.S. listing last week. Shares of SK Hynix fell over 9% in Seoul, reversing the previous session's 8% rally, after logging its steepest one-day decline on Monday as investors locked in profits amid growing worries over AI spending. Domestic rival Samsung Electronics dropped more than 7%, Seoul Semiconductor fell over 5%, LG Innotek lost about 1%, and Samsung SDI was down over 2%. In Japan, AI-linked equipment makers Advantest fell more than 6%, SoftBank Group slid nearly 7%, Tokyo Electron lost over 5%, and Renesas Electronics declined 4%. The losses follow a sell-off in U.S. semiconductor shares overnight, with Micron Technology sinking 8%, Intel losing more than 4%, and Lam Research and Advanced Micro Devices each falling about 3%. The declines come despite strong results from ASML, which raised its full-year sales guidance for a second time this year, forecasting revenue of 43 billion euros to 45 billion euros, above analysts' expectations, while outlining plans to further ramp production of its extreme ultraviolet lithography machines. Louis Kondratev, trader at XFUNDs, said the recent pullback reflects how crowded semiconductor trades have become after a prolonged AI-driven rally, noting that semiconductors now make up roughly 20% of the S&P 500, which is incredibly difficult to sustain, compared to just over 8% during the dot-com bubble of 2000 and a historical average between 2% and 5%. He also warned the pace of gains may become harder to sustain as investors reassess lofty valuations.